Betsy works as a housekeeper for a large hotel chain. She would like the housekeepers to form a union because she heard that a Hyatt hotel in Boston recently replaced their entire housekeeping staff with temporary workers from a staffing agency. The formation of a union in this case would provide which objective of unionization?
A) Higher compensation
B) Improved work rules and working conditions
C) Increased job security
D) Defined grievance procedures
E) Power through solidarity
Question 2 - Monopolistic competition is a market situation in which:
A) sellers must differentiate their products from competitors.
B) only one product is available.
C) a few identical products are available.
D) the same price is charged for all products.
E) the government regulates prices.
Question 3 - When Arthur heard about two line workers in another department being fired after a disagreement with their manager, he decided it was time to join the union: I have a family to feed, and I can't risk losing my job because some manager has a bad day. Arthur's reason for joining a union is to:
A) combat alienation.
B) increase job security.
C) correct perceived deficiencies.
D) increase his salary.
E) reinforce his family's support for the union.
Question 4 - As a farmer, Gary Forsythe is familiar with the economics of perfect competition. How is the price at which he sells his corn determined?
A) It is determined by Gary because he has a product that many people want.
B) The price is determined by combining the actions of all buyers and all sellers together.
C) The price he will receive is primarily determined by a few buyers at the local grain bin.
D) The government sets the price of the corn to level the playing field for everyone.
E) The price will be approximately 25 percent higher than what other farmers are selling the same corn for because Gary is an astute businessperson.
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