Impact of effective unionization on given scenario and evaluating the economic reasoning for given statement
1. Assume that Florida migrant workers are effectively unionized. Illustrate what will be the impact of the unionization on
(a) the price of Florida oranges,
(b) the profits of Florida fruit growers in the short run and in the long run,
(c) the mechanization of the fruit picking industry and
(d) the employment of fruit pickers?
Explain each answer.
2. Do the following comments reflect sound economic reasoning? Explain why or why not.
(a) "I paid $200.00 for this economics course. Therefore, I am going to attend the lectures even if they are useless and boring."
(b) "Since we own rather than rent, housing does not cost us anything."
(c) I own 100 shares of stock that I can't afford to sell until the price goes up enough for me to get back at least my original investment."
(d) "It costs to produce private education, whereas public schooling is free."