PART IV MATCHING ANSWERS A. argued that from the 'original position' behind the 'veil of ignorance' before we were born, if we had a choice, we would all choose an equal distribution of wealth among all people to guarantee we would all have sustenance, but the argument fails on the basis of incentive, decapitation of wealth for development, and paternalism. B. labor's bill of rights, the National Labor Relations Act. C. increases in wages which are not really increases when inflation is taken into account. D. the Supreme Court barred an LA grocery chain from buying one of its competitors on the basis that the 7 % control of the area market it would obtain to would be too great a concentration of power over the grocery market. E. could be interpreted as a conglomerate or horizontal merger. F. calculated on the basis that interest will cause money returned on an investment to be worth less than the money invested. G. the spreading of the possible lost of economic activity among the general population. H. allowed the President to order striking workers back to work for a 'cooling off' period if the strike was a danger to public welfare. I. money earned before inflation is taken into account. J. the reason that a firm which is losing money or maybe not even making a normal profit may continue in operation for some time. K. an example might be the Zamboni. L. the demand for steel based on the demand for automobiles. M. the highest average pay an employer can pay an employee. N. the difference between what an economic resource is earning
and what it might earn doing the next most productive thing. O. by disaggregating the statistics, demonstrated that a good deal of what is taken to be wage differential is based on factors other than overt discrimination. P. put restrictions on labor union leadership activities, the ability of national unions to take over locals, and the use of pension funds and other member money by leaders. Q. plots the distribution of wealth in a nation according to the quintiles of its population. R. suggests that poverty has been propagated by anti-poverty programs. S. workers must be a member of the union to be hired. T. laws in some states which prohibit forced union membership for employees. U. saw the business cycle as the 'gale of creative destruction.' V. pay adjusted to reflect the impact of inflation. W. argues that redistribution of wealth would be counter-productive and accomplish little in the long run. X. idea that all the poor some decades in the future will be single mothers or their dependent children. Y. false impression that increased pay means a higher standard of living because it does not take inflation into consideration. AA. the additional output from additional inputs of resources. BB. the difference between sales revenue and costs over the amount of investment. CC. 'free trade' 'laissez faire' Chicago school economist who devised the idea of a negative income tax. DD. a firm at which an employee must join the union once they have been hired. THE TEST AS YOU WILL SEE IT IN CLASS ON JUNE 16. GOOD LUCK. Return to Beginning of Final