If a union successfully negotiates for higher wages and benefits for airline pilots, what impact would this have on supply and demand in the market for passenger airline travel, assuming no other changes take place in the market?
What will be an ideal response?
An increase in wages and benefits will shift the supply curve to the left, but will not shift the demand curve. This will increase the equilibrium price and decrease the equilibrium quantity in the market for passenger airline service.
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Which of the following statements is false?
A) Anytime you have to decide which action to take you are facing an economic trade-off. B) Every individual, no matter how rich or poor, is faced with making trade-offs. C) Trade-offs do not apply when the consumers purchase a product for which there is excess supply, such as a stock clearance sale. D) Economics is a social science that studies the trade-offs we are forced to make because of scarcity.
Karl Marx's massive work, titled Das Kapital, was published in 1848
a. True b. False Indicate whether the statement is true or false