One reason nonunionized firms do not always drive unionized firms out of business is that:
A. unionized firms hire more selectively, employing workers with greater human capital.
B. unionized firms reduce the value of total output.
C. markets are not competitive.
D. unionized firms receive government subsidies.
Answer: A
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In the figure above showing the costs and benefits of paper production, there is an
A) external cost associated with paper production. B) external benefit associated with paper production. C) external cost associated with paper consumption. D) external benefit associated with paper consumption.
If a firm is maximizing profit and the marginal revenue product of labor is $10 and the marginal revenue product of capital is $30, then
a. the marginal resource cost of labor is $3, and the marginal resource cost of capital is $0.33 b. the marginal resource cost of labor is $0.33, and the marginal resource cost of capital is $3 c. the marginal resource cost of labor equals the marginal resource cost of capital; both are $300 d. the marginal resource cost of labor is 1/3 of the marginal resource cost of capital e. we have no way of knowing the marginal resource cost of either labor or capital
Assume, for Japan, that the domestic price of automobiles without international trade is lower than the world price of automobiles. This suggests that, in the production of automobiles,
a. Japan has a comparative advantage over other countries and Japan will import automobiles. b. Japan has a comparative advantage over other countries and Japan will export automobiles. c. other countries have a comparative advantage over Japan and Japan will import automobiles. d. other countries have a comparative advantage over Japan and Japan will export automobiles.
In Figure 5.1, during the 1980-1990 time periods, real GDP was relatively constant but nominal GDP increased. This can be explained by
A. Lower average price levels. B. A decrease in production per capita. C. Inflation. D. Higher levels of production.