Wage negotiations in baseball can fit the bilateral monopoly situation when a star player negotiates with an owner. Explain how collective bargaining would be used in wage negotiations and the role of player strikes
Collective bargaining asks the player and the owner to submit a wage. The mediator then seeks a compromise (although in baseball, the mediator simply chooses the player or the owner wage). Strikes give credibility to player demands. If strikes were disallowed, owners would be less likely to agree to mediation.
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In New State, the bottling law requires that people get a refund of five cents when they return an empty bottle or can. Why does the state pay people to return bottles? In your answer, be sure to mention the role played by incentives
What will be an ideal response?
When one country "dumps" some of its products in another country, it
A) increases the aggregate level of employment in the importing country, thereby depressing that nation's market wages. B) also exports new technology to the importing nation and thereby indirectly boosts the importing nation's real GDP. C) sells its products abroad at a price lower than the price in the home market or lower than the cost of production. D) also exports pollution-causing technologies and thereby creates environmental hazards in the receiving country.