What two explanations are offered for why unions have declined?
What will be an ideal response?
There has been a sharp decline in union membership since the mid-1950s when about 25% of the work force was unionized. Two complementary hypotheses are given to explain the decline. First, the structural-change hypothesis is that changes in the structure of the economy and of the labor force have limited the expansion of union membership. Second, the managerial-opposition hypothesis is that the opposition of management to unions increased because union firms are thought to be less profitable than nonunion firms. The policies employed by management against unions decreased union membership.
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a. interest, dividends b. profits, dividends c. dividends, profits d. dividends, interest e. dividends, mortgages
If you're interested in measuring changes in people's standards of living, the most appropriate measure to use is the growth in the nation's
a. nominal GDP b. real GDP c. capital-output ratio d. capital stock e. employment
After an adverse supply shock occurs, the ____________ curve shifts _____________ resulting in a(n) _________________ in the price level and a(n) ________________ in Real GDP
A) AD; leftward; decrease; decrease B) AD; rightward; increase; increase C) SRAS; rightward; decrease; increase D) SRAS; leftward; increase; decrease
When demand is elastic, an increase in price will cause
a. an increase in total revenue.
b. a decrease in total revenue.
c. no change in total revenue but an increase in quantity demanded.
d. no change in total revenue but a decrease in quantity demanded.