What characteristics of both the product market and the labor market enhance the likelihood that a union will be effective?
An inelastic demand in the product market would increase the ability of unions to increase the value of their compensation packages. In this instance, higher prices can be passed on to consumers in the product market. Also, an inelastic demand for the unionized labor strengthens the union's power. The fewer good substitutes for labor, the more power the union will likely have.
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If the production possibilities curve is a straight line:
A. the two products will sell at the same market prices. B. economic resources are perfectly substitutable between the production of the two products. C. the two products are equally important to consumers. D. equal quantities of the two products will be produced at each possible point on the curve.
Refer to the information provided in Table 22.5 below to answer the question(s) that follow.
Table 22.5
Refer to Table 22.5. If 2015 is the base year, the price index in 2015 is
A. 1000. B. 100. C. 10. D. 1.