Which of the following statements is correct?
A. For the United States, union workers earn 10 to 20 percent more than nonunion workers doing the same work.
B. Most other industrialized countries have a larger union markup.
C. The union markup is relatively small for unionized firms in a competitive market.
D. None of these
Answer: A
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A comic book company pays an annual licensing fee of $10,000 for the rights to an artist's character. Which would have the bigger effect on the readers of that character's comic: an increase in printing costs or an increase in the artist's licensing fee? Explain.
What will be an ideal response?
Cartel agreements are more likely to break down when
A) there are few variations in market demand. B) new firms enter the market. C) participating firms earn huge profits. D) none of the above.
The most powerful tool unions have at their disposal when bargaining with management is
A) the Taft-Hartley Act. B) the ability to strike. C) the secondary boycott. D) the power of pure competition.
Refer to Figure 3-8. The graph in this figure illustrates an initial competitive equilibrium in the market for motorcycles at the intersection of D2 and S2 (point E)
If the technology to produce motorcycles improves and the number of buyers increases, how will the equilibrium point change? A) The equilibrium point will move from E to C. B) The equilibrium point will move from E to A. C) The equilibrium point will remain at E. D) The equilibrium point will move from E to B.