The economics of labor

Question 9. The following two unrelated questions, 9A and 9B pertain to the economics of labor: Question 9A. In the past 20 years, union leaders have been organizing drives to sign up employees of state and local government agencies (police, firefighters, prison guards, etc…) as well as services workers (custodians, hotel and restaurant workers, etc…). During the same period, union efforts to organize the manufacturing sector have notmet the same level of success as they have in the public services sector. · Can you explain why unions are less successful in organizing the manufacturing industry but more successful with these public agencies and services sector? Question 9B. When the Washington State legislature was debating a Bill in 2001 that would allow optometrists to administer certain eye-drops during eye exams, 50 ophthalmologists descended on the state Capitol to lobby against the Bill. The chairman of the state Academy of Ophthalmology told a reporter: “There is no economic advantage one way or the other.” The ophthalmologists’ sole concern was that, if the Bill became law, “more people will be harmed through inappropriate use of drugs.” (Note: optometrists are not medical doctors, and their training focuses on examining the eye for defects and faults and prescribing correctional lenses). · Do you believe that 50 medical specialists all took a day off from their practices to lobby the legislature exclusively out of concern for the public’s health? Use the demand and supply to show what the medical doctors are trying to achieve by defeating the bill.

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