The ultimate weapon of management in bargaining with labor is the ability to take a _______.

The demand for _____ is most severely affected by a recession

a. medicines b. automobiles c. breakfast cereals d. haircuts e. gasoline

A tax on wages will

a. reduce labor supply since leisure becomes cheaper. b. raise labor supply since income is reduced. c. have an unpredictable impact on labor supply since there are both substitution and income effects. d. have a predictable impact since economists know substitution effects will dominate.