Economics: Private and Public Choice (MindTap Course List)
16th Edition
ISBN: 9781305506725
Author: James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson
Publisher: Cengage Learning
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Question
Chapter ST9, Problem 4CQ
(a)
To determine
Check whether the statement is correct regarding the effect of increasing price of a good.
(b)
To determine
Check whether the statement is correct regarding the effect of increasing price of craft union.
(c)
To determine
Check whether the statement is correct regarding the interest of labor union and union employers.
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Students have asked these similar questions
Would you expect the presence of the labor unions to lead to higher or lower pay for worker-members in the short run? What about the long run?
For each of the following determine the impact on the demand or the supply of labor and the effect on the equilibrium wage and quantity of labor employed.
a. An increase in the price of capital.
b. A union is formed which uses collective bargaining to obtain higher wages for its members.
c. The marginal productivity of workers rises.
d. People desire leisure more than ever before (e.g. it is Christmas Day).
e. The wages offered in other labor markets requiring similar skills are now offering substantially higher wages.
f. The fringe (non-monetary) benefits offered in this market have increased substantially.
g. The government has just adopted an "open-door' immigration policy?
Touch upon the idea of how labor unions advocate and defend minimum wage legislation. Research and state whether you believe this to be true or false, defend your position.
Chapter ST9 Solutions
Economics: Private and Public Choice (MindTap Course List)
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Similar questions
- What happens when a firm does not agree to the wages the employees of a union demand? Select the correct answer below: Nothing. The union workers do not have the ability to negotiate the salary. Union workers can go on strike demanding higher wages. Nothing. The union wages are based on a contract so they can't negotiate higher wages. The firm does not have the option to disagree, it must meet the wage demands of the union.arrow_forwardIn the market for labor ______ purchase labor from ________. Firms, individuals Individuals, firms Unions, individuals Monopsonies, firmsarrow_forwardIn the following table, identify which side of the labor market is affected by labor unions' practices. Practice by Labor Union Union supports legislation that increases the price of imports of the product produced by union labor. Union lobbies for an increase in the minimum wage. Union imposes rigid certification requirements for all employees. The Demand for Union Labor The Supply for Union Laborarrow_forward
- Some people have argued: "Any gains made by unions in the form of higher wages will create lower wages for non-unionized workers." Leaving aside whether this is actually the case or not, what is the economic logic behind such an argument?arrow_forwardWhich of the following are reasons why union membership is in decline in the United States? Choose all that apply. a Public opinion of unions has declined as many factories have moved overseas for cheaper labor costs. b Many employers are opposed to their employees joining a union. c Union members generally earn less and have poorer working conditions than those who are not in unions. d Employment patterns have changed in the United States since the time when unions reached their peak.arrow_forwardThe market for Pepsi is in equilibrium. The workers at Pepsi get a new union contract that doubles their pay. Draw a Supply and Demand graph, properly labeled, and show the initial situation and the situation after the new information is released on the same graph with arrows showing the direction of any change. Clearly state the impact on price and quantity.arrow_forward
- What is the Purpose of Unions? What are the Characteristics of a Purely Competitive Market?arrow_forwardIn the following table, identify which side of the labor market is affected by labor unions' practices. Practice by Labor Union Union supports legislation that reduces imports of the product produced by union labor. Union organizes training programs for new entrants. Union requires new hires to become a member within a certain time after being employed. The Demand for Union Labor The Supply for Union Laborarrow_forward
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