From a firm’s point of view, unionized labor might _______________ because union workers tend to stay longer at a job.
a. increase productivity
b. drive wages down
c. decrease productivity
d. drive the company out of business
a. increase productivity
From the firm’s point of view, the key question is whether the higher wages of union workers are matched by higher productivity. Union workers might have higher productivity than nonunion workers for a number of reasons, such as union workers tend to stay longer at a given job, a trend that reduces the employer’s costs for training and hiring and results in workers with more years of experience.
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Explain the problem encountered by successive monopolies? How can the supplier and the producer overcome this problem?
Which of the following is an example of tacit collusion?
a. OPEC b. copper cartel c. price leadership d. government franchise granted to a utility
Which of the following correctly explains the crowding-out effect?
a. An increase in government expenditures decreases the interest rate and so increases investment spending. b. An increase in government expenditures increases the interest rate and so reduces investment spending. c. A decrease in government expenditures increases the interest rate and so increases investment spending. d. A decrease in government expenditures decreases the interest rate and so reduces investment spending.
Refer to the following graph. The price of labor is $3 per unit:
What is the price per unit of capital?
A. $2.00 B. $5.00 C. $1.50 D. $2.10