• Describe labor and other resource markets. How is the market for labor similar to and different from the markets for steel or other factors of production? What can a firm do to ensure a dependable supply of these resources?
• Look up the concept of a spillover effect and explain how unions have benefited workers who have never been a member of a union.
• Union membership for non-government workers has fallen dramatically over the last 30 years, yet government workers are becoming ever more and more unionized. Why do you think that is true?
• Would you expect the presence of labor unions to lead to higher or lower pay for worker-members, both in the short and long run?
• Would you expect a higher or lower quantity of workers hired by those employers? What effect would you expect this to have on a company's bottom line? As a union member, would you accept higher pay if you knew that would result in layoffs? Explain briefly.
• Will union membership continue to decline? Why or why not?