Why is it that the airline pilots union will likely be stronger and more effective than the fruit pickers union?
First, airline pilots possess a highly specialized skill for which there are no good substitutes. Conversely, the fruit pickers union might face competition from nonunionized unskilled workers and also from fruit-picking machinery. Second, the compensation of airline pilots is a small fraction of the total costs in the airline industry. Wage increases will have a negligible effect on total cost. If fruit harvesting is labor intensive, higher wages would raise costs substantially in the fruit industry.
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The table above shows the production possibilities for an economy. When the economy produces a combination of 900 books and 50 loaves of bread,
A) production efficiency occurs because resources are not overused. B) allocative efficiency is achieved because both goods are produced. C) production efficiency is not achieved. D) allocative and production efficiency are both achieved. E) production efficiency is not achieved but allocative efficiency might be achieved.
Which of the following Latin American countries had by far the worst growth rate between 1960 and 2011?
A) Brazil B) Columbia C) Mexico D) Venezuela
Other things constant, the economy's aggregate demand curve shows that
A) as the price level falls, real GDP decreases. B) any change in the price level shifts the aggregate demand curve. C) the quantity of real GDP demanded decreases when the price level rises. D) the quantity of real GDP demanded and the price level are not related.
After Suzie, owner of Suzie's Sweet Shop, hires her 8th worker the average product of labor declines. Which of the following statements must be true?
A) The average product of labor is negative. B) The marginal product of the 8th worker is negative. C) The marginal product of the 8th worker is less than the average product of labor before the 8th worker was hired. D) Suzie's profits would be greater if she did not hire the 8th worker.