Do unions have a positive or negative effect on economic efficiency?
What will be an ideal response?
Whether unions result in more or less efficiency and an increase or a decrease in the productivity of labor is a question with two sides. Unions can decrease efficiency by their featherbedding and work rules, by engaging in strikes, and by fostering a misallocation of labor resources. These negative effects are offset somewhat by reducing worker turnover, which gives firms more incentives to invest in the training and education of their workers, and thus enhance worker productivity.
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If the marginal cost of producing vanity license plates is virtually zero (by prison inmates with little else to do), then states would maximize their profits on plate sales at the point on a linear demand curve where
a. demand is inelastic. b. demand is elastic. c. demand is unit elastic. d. the demand curve crosses the horizontal axis.
Beginning in the mid-1970s, Congress deregulated several industries including airlines and trucking
a. True b. False Indicate whether the statement is true or false