The threat of a strike
a. can serve as an incentive for labor and management to reach an agreement
b. destroys incentives for labor and management to reach an agreement
c. is usually not taken seriously because employers know the workers will suffer during a strike
d. is not taken seriously unless management expects to suffer
e. is not taken seriously if public safety is at risk
Question 2
For each watch Denmark produces, it gives up the opportunity to make 50 pounds of cheese. Germany can produce one watch for every 100 pounds of cheese it produces. Which of the following is true concerning comparative advantage between the two countries?
a. Denmark has the comparative advantage in watches and cheese.
b. Germany has the comparative advantage in watches and cheese.
c. Germany has the comparative advantage in watches.
d. Denmark has the comparative advantage in watches.
e. Denmark has the comparative advantage in cheese.
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