Strikes are expensive for
a. workers only because their income falls
b. employers only because their revenue falls
c. the public only because output falls
d. both the public and employers because workers are compensated by the union for lost income
e. workers, employers, and the public
QUESTION 2For each watch Denmark produces, it gives up the opportunity to make 50 pounds of cheese. Germany can produce one watch for every 100 pounds of cheese it produces. Which of the following is true with regard to opportunity costs in the two countries?
a. The opportunity cost of producing watches is lower in Denmark.
b. The opportunity cost of producing cheese is lower in Denmark.
c. The opportunity cost of producing watches is identical in both countries.
d. It is impossible to compare opportunity costs because the two countries use different currencies.
e. In Germany the opportunity cost of producing one pound of cheese is one watch.
QUESTION 3In order for a strike to be successful, the union must decrease the supply of both union and non-union labor.
a. True
b. False
QUESTION 4For each watch Denmark produces, it gives up the opportunity to make 50 pounds of cheese. Germany can produce one watch for every 100 pounds of cheese it produces. Which of the following is true with regard to opportunity costs in the two countries?
a. The opportunity cost of producing watches is higher in Denmark.
b. The opportunity cost of producing cheese is higher in Denmark.
c. The opportunity cost of producing cheese is identical in both countries.
d. It is impossible to compare opportunity costs because the two countries use different currencies.
e. In both countries combined, the opportunity cost of one watch is 150 pounds of cheese.
QUESTION 5An impartial observer who attempts to settle disagreements by listening to both sides separately and making suggestions is called a(n)
a. collective bargaining agent
b. arbitrageur
c. mediator
d. binding negotiator
e. judge
QUESTION 6Suppose that workers in Transylvania can produce only two goods -- yo-yos or sweatsocks. The Transylvanian currency is the daler. In what unit is the opportunity cost of yo-yos measured?
a. dalers
b. dalers per yo-yo
c. dalers per sweatsock
d. yo-yos
e. sweatsocks
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