Prices in Resource Markets

question 6

Multiple Choice

Prices in resource markets

• A) provide users with information concerning the relative scarcity of resources.
• B) encourage the use of a resource now if its price is expected to rise in the future.
• C) provide suppliers with little incentive to develop more of those resources that are intensely demanded by users.
• D) have little impact on productive decisions unless they are closely regulated by the government.

Comprehend the preferences of unions regarding agency shops versus open shops.

Compare job turnover rates between union and nonunion workers.

Interpret the legal implications of right-to-work laws on labor unions.

Identify the requirements and implications of having an agency shop in the workplace.

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Definitions:

Payment to Labor

The compensation that workers receive in exchange for their labor, typically in the form of wages or salaries.

Derived Demand

The demand for one good or service that occurs as a result of the demand for another good or service, often because the goods are related as inputs to the production of another good or service.

Auto Workers

Individuals employed in the automobile industry, typically involved in the manufacturing, assembly, or design of vehicles.

Demand for Automobiles

The consumer desire to purchase cars, influenced by factors like income, price, and personal preferences.