Joan purchases a beautiful rug for $25,000. After several years of wear and tear, Joan has the rug appraised and finds that it is now worth only $20,000. Based on this information:

Suppose that a local government decides to provide more funds to the local police department in order for the department to hire additional police officers. Is there an opportunity cost of this action? If so, how would you measure it?

What will be an ideal response?

In the United States the differential between union and non-union wages

A) does not exist. B) currently averages about 50-60 percent. C) has been narrowing. D) tends to fall during a recession because union members typically have shorter-term contracts than do nonunion employees.