Question

Based on compensating differentials who would you expect to earn more a lumberjack or a store clerk?

For the most part, product differentiation is accomplished through ___________.

How do unions control the supply of Labor?

Why do special interests so have so much power in our political system?

Why are voters rationally ignorant?

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Answer 1

Logging workers earned a median annual salary of $40,650 in May 2018, according to the U.S. Bureau of Labor Statistics. On the low end, logging workers earned a 10th percentile salary of $30,100, meaning 90 percent earned more than this amount. The 90th percentile salary is $47,510, meaning 10 percent earn more. In 2018, 53,600 people were employed in the U.S. as logging workers.

While,

As a retail sales worker, you can expect to earn a median wage of $23,370 per year, or $11.24 per hour, according to the BLS.

For the most part, product differentiation is accomplished through Advertising.

Advertising is useful in communicating to customers what makes your product different, bigger or better.

The power of labor unions rests in their two main tools of influence: restricting labor supply and increasing labor demand. Some economists compare them to cartels.4

 Through collective bargaining, unions negotiate the wages that employers will pay. Unions ask for a higher wage than the equilibrium wage (found at the intersect of the labor supply and labor demand curves),

But this can lower the hours demanded by employers. Since a higher wage rate equates to less work per dollar, unions often face problems when negotiating higher wages and instead will often focus on increasing the demand for labor.

Unions can affect the supply of labour in three ways.

1. Firstly, unions can attract workers into the labour market because of the benefits of becoming a member. This will shift the supply curve to the right.
2. Secondly, unions exert control over the labour supply and can withdraw labour by limiting working hours or going on strike. A strike will shift the supply curve of labour to the left.
3. Thirdly, by influencing wages through collective bargaining the supply curve for unionised workers is more inelastic than one for non-unionised workers.

There are some key points to show so much power of political system :

Lobbying is widespread throughout the U.S. political system; previous research puts lobbying expenditures at the federal level at approximately five times those of political action committee (PAC) campaign contributions.

Some people believe that lobbyists have too much influence. There is concern about the huge sums of money that powerful pressure groups contribute to the campaigns of members of Government.

lobbyists can do many things which raise questions. They can give Senators and Representatives small personal gifts. They can take the members of Government to dinner at the finest restaurants.

Most members admit that this can happen. But they claim that it doesn't happen very often. Instead, they say that there is only one good way that a lobbyist can influence them: Lobbyists sometimes change a member's vote by presenting a strong argument.

Voters are rationally ignorant because the likelihood of his or her vote being decisive in an election is vanishingly small.

The small incentives to become informed include reducing one’s susceptibility to deceptions, misinformation and propaganda. And if remaining ignorant is rational individual behavior, it has likely destructive collective outcomes.

The problem of ignorance is unlikely to be ameliorated by increasing voter knowledge because demand for information, not the supply of it, is the major constraint on political knowledge.