Some states require that unions represent non-union workers who don't pay dues in their collective bargaining negotiations
Explain using economic logic how this might result in fewer unions than would otherwise be the case if these types of laws did not exist.
This is a classic example of the free-rider problem. Non-payers are able to enjoy the benefits that are created by payers. In this case the payers are the union members. Knowing this many workers may be less inclined to vote to have a union represent them in the first place.
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Using the figure above, suppose education is provided by public colleges, where tuition is set at $10,000 a year. Then, ________ million students are enrolled, and the taxpayers cover ________ of marginal cost per student
A) 15; $15,000 B) 7.5; $5,000 C) 3.5; none D) 15; $25,000 E) 7.5; $15,000
Grown children fawning over an elderly parent in order to try to secure a larger inheritance is an example of
A) rent seeking. B) logrolling. C) rational ignorance. D) public choice.
The quantity demanded of Coca Cola has increased. The best explanation for this is that
A. the price of Pepsi has decreased. B. the price of Coca Cola has decreased. C. Coca Cola consumers had an increase in income. D. Coca Cola has instituted a new, successful advertising campaign.
Existing teams have the bargaining power to induce cities to build stadiums for them because of the
A. ease of obtaining expansion franchises. B. fact that they have won national championships. C. difficulty of obtaining expansion franchises. D. fact that land in some urban areas is still relatively cheap.