When a union successfully raises the wages of its members, it will also
a. increase total productivity, which will generally increase in proportion to the wage rate.
b. encourage employers to purchase more of the union labor.
c. increase the share of income allocated to labor as opposed to capital.
d. increase the employer's incentive to find substitutes for union labor.
D
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Once economists take into consideration changes in the expected inflation rate and supply shocks, the Phillips curve
A) only remains useful when explaining the long-run trade-off between unemployment and inflation. B) remains a useful tool for explaining the short-run trade-off between unemployment and inflation. C) is no longer a useful tool for explaining any trade-off between unemployment and inflation. D) accurately explains the short-run and long-run trade-offs between unemployment and inflation.
Jerome, the florist, sold 500 bridesmaid's bouquets in June. He estimates his costs that month were ATC = $10, AVC = $6, and MC = $9 . If he sold each bouquet at the constant market price of $9, Jerome:
a. made an economic profit of $500. b. made a loss of $500. c. made an economic profit of $1,500. d. made a loss of $1,500. e. should have shut down in June.
Assume the market for orange juice is perfectly competitive. Orange juice producers currently earn a zero economic profit. Orange juice producers will likely begin to incur economic losses in the short run, and some producers will exit the industry until those remaining earn a zero economic profit, if consumers
A. switch from grape juice to orange juice. B. do not change their demand for orange juice. C. switch from orange juice to grape juice. D. All of the above are correct.
The rule of reason would have not found a well-behaved, but gigantic, firm to be in violation of the antitrust laws
a. True b. False Indicate whether the statement is true or false