Do these conditions increase the union wage premium

Assignment Help Business Economics

Reference no: EM13985629

How would the following circumstances affect workers’ ability to earn higher wages by forming a labor union? Do these conditions increase the union wage premium, decrease it, leave it unchanged, or is the effect ambiguous? Clearly indicate how your answers relate to theories learned in this class.

1. The production process is capital intensive.

2. There are many close substitutes for the product being produced.

3. All firms in the industry use a standardized set of tools and techniques.

4. Creativity and analytical thinking are an important part of the value that workers add to the production process.

5. Established firms in the industry are well-known to customers, so a new firm would have to advertise extensively.

6. The good being produced is durable and easily transported.

Reference no: EM13985629

Questions Cloud

Contrast the way classical and keynesian theory : Compare and contrast the way Classical and Keynesian theory determine the Demand for Money and how it is related to the Money Supply. As a part of your comparison, indicate which of these theories developed the concept of a Liquidity Trap and what th..

About the financial ramifications of her decision : Yolanda is a licensed marriage counselor in Oklahoma and earns an annual salary of $40,000 there. She recently learned that marriage counselors earn $55,000 per year in Kansas, and she is thinking of moving. Assuming that she is only concerned about ..

Concerned about changes in the distribution of income : Many people are concerned about changes in the distribution of income.

Game theory focuses on and more elastic means : Game theory focuses on, "more elastic" means, Which of the following is an example of a normative statement?

Do these conditions increase the union wage premium : How would the following circumstances affect workers’ ability to earn higher wages by forming a labor union? Do these conditions increase the union wage premium, decrease it, leave it unchanged, or is the effect ambiguous?

If the threat effect is larger than the spillover effect : If the threat effect is larger than the spillover effect, then the difference between the wages earned by union members and those earned by comparable non-union workers is greater than the amount by which unionization increases the wages of union mem..

With the total cost and total revenue curves : A decrease in demand will cause a (n) With the total cost and total revenue curves, we measure economic profit by the ______ between the two curves. With the per-unir curves, we measure economic profit by a (n) ______.

Shutting down production line-dispose of extrusion machine : Your company has a customer who is shutting down a production line, and it is your responsibility to dispose of the extrusion machine. The company could keep it in inventory for a possible future product and estimates that the reservation value is $2..

The increased unemployment to reduce inflation : In the 1980s the increased unemployment to reduce inflation. This eventually would cause a decrease in the price level lowering money demand, raising the interest rate which increases investment which increases the aggregate quantity of goods & servi..

User Account

All Pages