What is meant by bargaining power? What are the two factors that determine an individual's bargaining power?
What will be an ideal response?
Bargaining power describes the relative power an individual has in negotiations with another individual. The cost of failing to come to an agreement and the influence of one person on the other are key determinants of bargaining power.
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If the exchange rate changes from 1.5 euros per dollar to 1.0 euro per dollar, the euro has
A) depreciated against the dollar. B) appreciated against the dollar. C) fallen inversely in value. D) depreciated against the euro. E) appreciated against the euro.
If firms pay what are called "efficiency wages," they pay wages that
A) are lower than average to ensure maximum profit. B) are mandated by the government. C) will eventually lower the unemployment rate. D) motivate workers to increase their productivity.