What can a union do in order to raise the wages of its members?
What will be an ideal response?
A union can establish a wage rate above the market clearing wage rate by negotiating with firm management and then ration the available jobs among union members. It can also indirectly raise wages by limiting supply over time, raising the demand for union workers through raising their labor productivity, or by increasing the demand for union-made goods.
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If Happy Campers, Campers R Us, and Happy Trails each have a market share of 22 percent, according to Chinese law, Happy Campers ________ be considered a dominant firm because the total market share across the three firms is ________ percent.
A) would; 66 B) would; 22 C) would not; 66 D) would not; 22
Suppose consumers expect the price of a good to be higher in the future than it is today. Would the current demand for the good increase or decrease?
The government can raise tax revenue and increase total economic surplus by taxing:
A. goods that generate positive externalities. B. goods whose supply and demand curves are highly elastic. C. luxury goods that are primarily consumed by wealthy individuals. D. goods that generate negative externalities.
If the reserve ratio is .05, the money multiplier can be as high
A. as 10. B. as 50. C. as 5. D. as 20.