Discuss how unions affect prices indirectly.
What will be an ideal response?
Unions affect prices indirectly through changes in productivity. Unions bargain for work rules that may limit the pace of production, restrict the types of jobs a particular individual can perform, or require a minimum number of workers to accomplish a certain task. Work rules may also increase productivity by increasing job security, which reduces labor turnover and makes workers more willing to learn new tasks and to train others in specific skills.
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If the government increases spending while holding taxes constant, we expect
A) a decrease in real saving as consumers follow suit and also increase borrowing. B) planned real investment spending by businesses to increase. C) an increase in investment spending by businesses too, as they anticipate future economic growth. D) interest rates to rise.
In the past half century, the developing countries have experienced major compositional shifts from exports of primary products (including agricultural and raw materials) to exports of manufactures
How might you explain this in terms of broad historical developments during this period?
How do the three basic economic questions relate to the firm?
What will be an ideal response?
Labour productivity is measured by:
What will be an ideal response?