In a Survey of Consumers, Daniel Kaheman, Jack Knetsch and Richard

question 257

Multiple Choice

In a survey of consumers, Daniel Kaheman, Jack Knetsch and Richard Thaler asked their opinion of a hardware store's decision to

• A) go out of business because a larger hardware store opened in the same city; 82 percent of those surveyed believed it was unfair for the larger store to compete with the smaller store.
• B) raise the price of snow shovels the day following a snowstorm; 82 percent of those surveyed believed this was unfair.
• C) sell tickets to sporting and cultural events at prices higher than prices paid at the ticket windows for the same events; 82 percent of those surveyed believed this was unfair.
• D) remain in business even though the store was not making an economic profit; 82 percent of those surveyed believed it would be unfair for the store to go out of business if there no other hardware stores in the same area.

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Definitions:

Agency Shop Agreement

A labor contract clause requiring employees to either join the union or pay a fee without being forced to become union members.

Taft-Hartley Act

A 1947 United States federal law that restricts the activities and power of labor unions.

Right-to-Work Laws

State laws in the United States that prohibit unions from requiring union membership as a condition of employment, aiming to protect workers' freedom to choose.

Exclusive Representative

An entity or person designated as the sole agent to act on behalf of another entity or group in negotiations or other official matters.