Tom Is a Non-Union Employee at General Power

question 190

Multiple Choice

Tom is a non-union employee at General Power.Eight-five percent of the employees at General Power are unionized.The union at General Power has negotiated very good benefits.Even though he is not a union member and he does not have to pay union dues,Tom receives all the benefits that the union has negotiated.Tom's behavior is an example of

• A)rivalry.
• B)a barrier to entry.
• C)free riding.
• D)Taft-Hartley opposition.

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Definitions:

Initial Endowment

The initial quantity of goods, services, or resources that an individual or entity possesses before entering into any exchange or economic activity.

Units of Quiche

A measure of output in the production of quiches, indicating the quantity produced or consumed.

Pareto Optimal Allocation

An allocation of resources from which it is impossible to reallocate so as to make any one individual better off without making at least one individual worse off.

Utility Function

A mathematical model in economics that represents an individual's preference system, used to rank choices in order of preference.