Unions cannot exert market power without exerting control over the market supply curve for labor.
Answer the following statement true (T) or false (F)
True
To maintain a noncompetitive wage, the union must be able to exercise some control over the labor supply decisions of individual workers. The essential force here is union solidarity. Once unionized, the individual workers must agree not to compete among themselves by offering their labor at nonunion wage rates.
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Suppose Sam plans to buy only popcorn and soda. He has $40 to spend per week. A change in which of the following variables will change Sam's consumption possibilities? I. price of popcorn II. income III. preferences IV. utility
A) II only B) I and II C) I, II and III D) III and IV
Fiat money is generally issued by
A) private banks. B) central banks. C) brokerage firms. D) major multinational corporations.
In the foreign-exchange market, trading
A) is restricted to the hours 10 A.M. to 3 P.M. New York time. B) may not take place after 5 P.M. London time. C) takes place at any hour of the night or day. D) takes place at prices set by the U.S. government in consultation with the governments of other leading countries.
When price was 6, quantity demanded was 10. When price decreased to 5, quantity demanded increased to 13. Therefore, when price decreased, total revenue
A. decreased from 65 to 60, indicating that demand is inelastic. B. decreased from 65 to 60, indicating that demand is elastic. C. increased from 60 to 65, indicating that demand is inelastic. D. increased from 60 to 65, indicating that demand is elastic.