What is the difference between an exclusive union and an inclusive union? What are the economic effects of each type?
What will be an ideal response?
A craft union would be an example of an exclusive union. It uses licensing and other means to restrict entry into the union. By controlling the supply of members, who are typically skilled workers, the union can raise the wages of its members. The decrease in the supply of workers, however, also results in the loss of employment for workers who are not licensed or members of the union. An inclusive union would be an industrial union that includes workers who are both skilled and unskilled who work in an industry. The inclusive union tries to raise wages not by reducing the supply of workers, but by bargaining for a higher wage rate for all workers in the industry. The higher wage rate, however, will reduce the total number of workers who are hired in the industry.
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An increase in real income with constant prices and domestic credit leads to the same effects under both fixed and purely flexible exchange rates
Indicate whether the statement is true or false
The above figure shows the market for steel ingots. If the market is competitive, then to achieve the socially optimal level of pollution, the government can
A) outlaw the production of steel. B) institute a specific tax of $25. C) institute a specific tax of $50. D) institute a specific tax equal to area b.
A main argument for investing in US securities is the:
A. high rate of interest. B. low rate of interest C. low risk of owning them. D. varied time frame of payment for different types of securities.
According to economists, when two people make exactly the opposite decision
A. one of them is acting out of spite. B. one of them should compromise. C. one of them is acting irrationally. D. each person evaluates the situation according to his/her individual self-interest.