A right-to-work law is
A) a federal law making the closed shop illegal.
B) a federal law making the union shop illegal.
C) a state law making the union shop illegal.
D) a state law making the open shop illegal.
Answer: C
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When the aggregate demand curve shifts rightward, the price level ________ and the unemployment rate ________
A) decreases; increases B) decreases; decreases C) increases; decreases D) does not change; does not change E) increases; increases
The cost of lobbying for an import quota in a perfectly competitive market
A) increases the welfare loss of the quota. B) decreases the deadweight loss of the quota. C) shifts the supply curve of the good to the left. D) increases the consumer surplus.
Refer to the above figure. Suppose the economy is at C. If the government tried to reduce the unemployment rate to 3 percent, the new long-run outcome will be at point
A) A. B) C. C) D. D) H.
Suppose an American worker can make 20 pairs of shoes or grow 100 apples per day. On the other hand, a Canadian worker can produce 10 pairs of shoes or grow 20 apples per day. The opportunity cost for Canada is:
A. 2 apples for each pair of shoes. B. 2 pairs of shoes for each apple. C. ½ apple for each pair of shoes. D. ½ pair of shoes for every 2 apples.