The city of Unionville can use several different combinations of labor and computers to run its Department
Question:
The city of Unionville can use several different combinations of labor and computers to run its Department of Motor Vehicles. For example, files can be kept in file drawers, or on the computer. People can fill out their personal information on a paper form when they enter the office, or on a computer. Driver's tests can be given and scored on paper, or on a computer. Below are three estimates of the mix of labor and computers needed to run the Department of Motor Vehicles. Computers and software cost $2000 each and must be replaced once a year. In the table below three choices of combinations of labor and computers are listed. Use this set of information to answer the following questions.
a. In a non-unionized labor market, the wage for workers at this office will be $24,000 per year. Given this wage, will choice A, B, or C be preferred?
b. A strong union is started and it manages to raise the wage of workers in this office to $40,000. Given this wage, will choice A, B, or C be preferred? Why?
c. Based on your answer to the first two parts of this question, how has the union affected the number of jobs available? d. Based on your answer to the first two parts of this question, is there reason to believe that a union worker will be able to handle more citizens than a nonunion worker was able to handle before the creation of the strong union?
Accounting Information Systems
ISBN: 9780132871938
11th Edition
Authors: George H. Bodnar, William S. Hopwood