As Part of Recent Cutbacks,Paul Just Accepted a 10% Cut

question 55

Multiple Choice

As part of recent cutbacks,Paul just accepted a 10% cut in pay.Now he brews coffee at home instead of stopping at Starbucks every day.Based on this behavior,we can say home-brewed coffee:

• A) is a normal good, and Starbucks coffee is an inferior good for Paul.
• B) and Starbucks coffee are normal goods for Paul.
• C) will become a normal good for Paul over time.
• D) is an inferior good, while Starbucks coffee is a normal good for Paul.

---

Definitions:

Illegal Strike

A work stoppage by a group of workers that is not authorized by the relevant labor laws or violates a binding labor agreement.

Union Shop

A workplace where employees are not required to join the union in order to be hired, but must join within a certain period of being employed and remain members as a condition of employment.

Closed Shop

A workplace where only workers who are already members of the union can be hired.

Agency Shop

A workplace where employees are not required to join the union, but must pay union dues as the union negotiates on behalf of all employees.