Problem 8
Evaluating Economic Decisions In 1981 , a group of air traffic controllers, employees of the Federal Aviation Administration, went on strike. They wanted to reduce their workweek to 32 hours instead of the usual 40 because of the high stress of their jobs. President Ronald Reagan broke the strike and disbanded the union of air traffic controllers, claiming that they were striking illegally. About 100 strikers were arrested, and all of them were banned for life from jobs in air traffic control. Did Reagan do the right thing by firing the striking workers? Explain your answer.
Problem 8
What economic problem does the minimum wage try to address?
Problem 8
Explain how changing technologies have led to workers changing careers more often.
Problem 9
Explain why working conditions can either justify higher wages or make up for lower wages.
Problem 9
The United States has shifted to an economy driven by service industries. The primary sector, which deals in natural resources, and the secondary sector, which produces goods, are both shrinking. Do you think the shift toward a service economy is helping American workers or hurting them? Give reasons for your answer.
Problem 10
Adam Smith explained that countries maximize their wealth when they concentrate on producing the goods that they produce most efficiently and rely on international trade for goods they don't produce efficiently. Explain how outsourcing is an example of this concept.
