Is it ever rational for unions to strike if they know that their members will never be able to make up for the wages they lose during the strike? Explain
Yes, it may be. This is because the resolve they show in one strike may benefit them in the next round of
negotiations with the firm. A long, protracted strike is a signal to the firm to reassess the workers' determination.
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There are two people in an economy. Person A’s demand for a public good is Q = 10 - P and person B’s demand is Q = 20 - 2P. The highest total that A and B will be willing to pay for six units of the public good is
a. $3 b. $4 c. $7 d. $11
Which of the following is not a component of the M1 money supply?
A) Cash in circulation B) Gold owned by the federal authorities C) Deposits in checking accounts D) Any issued traveler's checks
If the local pizzeria raises the price of a medium pizza from $6 to $10 and quantity demanded falls from 700 pizzas a night to 100 pizzas a night, the arc price elasticity of demand for pizzas is:
A) 0.67. B) 1.5. C) 2.0. D) 3.0.
If the price level in an economy increases, other things constant, consumption spending is likely to _____
a. increase because real income increases b. decrease because real income increases c. increase because the real value of wealth increases d. decrease because the real value of wealth decreases e. increase because nominal income increases