Instead of Comparing the Salaries of Detroit Autoworkers to Foreign

question 23

Multiple Choice

Instead of comparing the salaries of Detroit autoworkers to foreign autoworkers to determine if Union labor prices are the cause of Detroit's financial woes, which of the following should be used?

• A) labor content per vehicle
• B) labor productivity
• C) total production
• D) A or B
• E) None of the above, salary is the best comparison.

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Definitions:

Income

The financial gain received by an individual or entity, usually from work, investments, business ventures, or other sources.

Expected Utility Function

A mathematical representation that calculates the overall utility that an individual can attain, based on different outcomes and their respective probabilities.

Sure Payment

A guaranteed payment or financial transaction where the receiver has complete certainty of receiving the specified amount.

Lottery

A form of gambling involving the drawing of numbers for a prize, often used as a method to allocate scarce resources such as green cards or in decision theory as a risk model.