Even though non-union workers maybe just as skilled as union workers, wages are almost 15 percent higher in union jobs. Why?
When unions become successful in obtaining higher wages through bargaining or restricting memberships, employment in the union sector will fall as a result of rise in wages. Equally skilled workers who are unable to find jobs in the union sector will then seek employment in the non-union sector. This increases supply of labor, thereby decreasing wages in the non-union sector.
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Which of the following is an example of a situation that would create an oligopoly? a. Boron InfoTech installs fiber optic cables throughout the community so that adding new customers incurs very little marginal cost. b. Aaron Super-sports has patented a super-grip glove that can be used for hiking
c. AquaHuman Mineral Water can only produce two-fifths of the market demand at the minimum point of the average total cost curve. d. Finch Brothers, a publishing house, holds the copyright for a popular superhero trilogy.
A firm in a perfectly competitive industry is maximizing its economic profit by producing 500 units of output. At 500 units of output, which one of the following must be false?
a. MC < ATC b. MC < AVC c. MC > ATC d. MR < ATC e. MR > AVC
Money demand depends on
a. the price level and the interest rate. b. the price level but not the interest rate. c. the interest rate but not the price level. d. neither the price level nor the interest rate.
Compensation wage differentials are
A. used to make pay equal across different groups of workers. B. driven primarily by differences in ability. C. driven primarily by differences in experience. D. used to offset the increased danger of some jobs.