A former union employee states: "We were on strike for two years. I know the eventual wage increase we received will never make up for the wages I lost, but I think the strike was worth it. We forced the company to give in to our demands." Evaluate these comments
If income were the only thing that mattered, this statement might be puzzling. However, this former employee asserts that something mattered more to him than income. Emotional issues often come into play during labor/management conflicts, and the union's victory apparently gave this person more utility than he thought the lost income would have yielded.
You might also like to view...
If marginal profit is zero, then average profit is at a maximum.
Answer the following statement true (T) or false (F)
Attempts to alleviate poverty have included all of the following income-maintenance programs EXCEPT
A) Social Security. B) temporary assistance to needy families. C) 401(k) plans. D) food stamps.
If the demand for leather decreases, producer surplus in the leather market
a. increases. b. decreases. c. remains the same. d. may increase, decrease, or remain the same.
When the supply of labor increases, according to the specificfactors model, which of the following is NOT likely to happen?
a. The number of workers employed will increase. b. The wages for workers will decline. c. The marginal product of labor shifts to the right. d. The overall wage in the economy increases in the short run.