Consider the Following to Answer the Question(s) Below

question 21

Multiple Choice

Consider the following to answer the question(s) below:
A farm owner who grows summer vegetables (e.g. tomatoes) must decide whether to employ additional pickers this season. If he does, he could hire either migrant workers or local teenagers who need summer employment. The migrant workers are more experienced, faster, but more expensive. Although the teenagers will work for less, they are not as experienced and tend to damage plants and produce. His profits, taking into account losses from unpicked perished or damaged produce, depend on whether there is a good or bad growing season. The payoffs are shown in the table below.
-According to the maximin approach, the farmer should

• A) hire migrant workers if the growing season is good
• B) hire teenagers
• C) not do any extra hiring
• D) hire migrant workers
• E) not do any extra hiring if the growing season is good

---

Definitions:

Closed-shop Agreements

Closed-shop agreements are labor contracts requiring employers to hire only union members, typically to ensure worker unity in negotiations and workplace standards, though they are restricted or illegal in some jurisdictions.

Landrum-Griffin Act

A U.S. law aimed at regulating labor unions' internal affairs and their officials, promoting democracy, and safeguarding union members' rights.

Permissive Items

Aspects of labor negotiations where employers are not obligated but are allowed to discuss and agree upon with employees or their representatives.

Collective Bargaining

The process of negotiation between employers and a group of employees aimed at reaching agreements to regulate working conditions.