Which of the Following Is True

question 104

Multiple Choice

Which of the following is true?

• A) The orthodox view of labor unions predicts that unionization of a firm will result in improvements in productivity and efficiency.
• B) The labor-union-as-collective-voice view of labor unions predicts that unionization of a firm will result in decreases in productivity and efficiency.
• C) The traditional view of labor unions supports the formation of unions as a counterweight to firms' factor-hiring power.
• D) The labor-union-as-collective-voice view of labor unions supports efforts to decrease the unions' role as "monopolizer of labor."
• E) none of the above

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Definitions:

Ultimatum Games

Represent a scenario in economic experiments where one participant proposes a division of resources, and the other can accept or reject the offer, which, if rejected, leaves both with nothing.

Heuristics

The brain’s low-energy mental shortcuts for making decisions. They are “fast and frugal” and work well in most situations but in other situations result in systematic errors.

Behavioral Economics

An area of economic research that examines how psychological, cognitive, emotional, cultural, and social factors affect the economic decisions of individuals and institutions.

Neoclassical Economics

An approach to economics focusing on the determination of goods, outputs, and income distributions in markets through supply and demand.