What can a union do in order to raise the wages of its members?
What will be an ideal response?
A union can establish a wage rate above the market clearing wage rate by negotiating with firm management and then ration the available jobs among union members. It can also indirectly raise wages by limiting supply over time, raising the demand for union workers through raising their labor productivity, or by increasing the demand for union-made goods.
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A financial contract that obligates one party to exchange a set of payments it owns for another set of payments owned by another party is called a
A) hedge. B) call option. C) put option. D) swap.
Clothing retailers have faced greater competition in recent years as more firms have entered the clothing market. Some of the competition has come from foreign competitors, but much of it is domestic competition
As a result there is much competition in markets for many types of clothing and A) individual buyers and sellers cannot affect the market price because it is determined by the market forces of demand and supply. B) there are no other implications. C) firms have a great degree of flexibility in pricing their products because these products can be sold at a high profit level. D) there are relatively few buyers and sellers in the market, and one individual firm can determine the market price.
Suppose Larry's Lariats produced 25,000 lassos and sold each for $10. What was the total revenue for the company?
A. $250,000 B. $25,000 C. $2,500 D. $2,500,000
Other things equal, and given that the elasticity of demand for health care is 0.2, a 10 percent increase in the price of health care in the United States will reduce the quantity of health care demanded by about:
A. 1 percent. B. 2 percent. C. 5 percent. D. 20 percent.