Economics: Principles & Policy
14th Edition
ISBN: 9781337912679
Author: William J. Baumol; Alan S. Blinder; John L. Solow
Publisher: Cengage Learning US
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Chapter 19, Problem 7DQ
To determine
Explain why unions stood strong against the airlines.
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Contrast the Knights of Labor with the AFL.
small hospital in rural Alaska is a monopsony employer of nurses. The nurses unionize. They have little power at the bargaining table, but they do bargain for a slightly higher wage. What happens to the number of nurses employed? What happens to labor costs and marginal labor costs?
Suppose that a car factory initially hires 1,600 workers at $20 per hour and that each worker works 40 hours per week. Then the factory unionizes, and the new union demands that wages be raised by 25 percent. The firm accedes to that request in collective bargaining negotiations but then decides to cut the factory’s labor force by 30 percent due to the higher labor costs.
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Economics: Principles & Policy
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- Are unions and technological improvements complementary? Explain why or why not.arrow_forwardWhat is the principle strategy of an inclusive (industrial) union in order to increase the wages of its members?arrow_forwardUnder the Wagner Act (NLRA), the only time workers are entitled to union representation is when the union has the support of the majority of workers at the workplace. False Truearrow_forward
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