How do labor unions influence wage rates?
What will be an ideal response?
Unions increase their members' wage rates by increasing the demand for their members' labor and decreasing the supply of labor. In particular, to increase the demand for their members' labor, unions: increase the value of marginal product of union members by sponsoring training schemes and apprenticeship programs; encourage import restrictions so that consumers must buy goods and services produced by union members; and, support minimum wage laws to raise the wage of a substitute for their members' labor. Unions also try to restrict the supply of labor, say by supporting immigration restrictions to decrease the supply of low-skilled labor. By decreasing the supply of low-skilled labor, the wage rate paid low-skilled labor rises, which increases the demand for high-skilled union labor.
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If you hold $25 in cash, have $150 in a checking account, and have $250 in a savings account, how much of M2 do you have?
What will be an ideal response?
If marginal cost exceeds average variable cost but is less than average total cost, then as output increases average total cost ________ and average variable cost ________
A) increases; decreases B) decreases; decreases C) increases; increases D) decreases; increases
In which decade was the poverty rate steady?
a. 1960s b. 1970s c. 1990s d. 2000s
Using Figure 1.7, we know the production of 5 units of soda and 2 units of pizza is 
A. impossible because we have the resources but do not have the technology. B. impossible because we have the technology but do not have the resources. C. possible, but there would be unemployed resources. D. possible, but only if all resources were fully employed.