Question

Given the readings and the lectures, which of the following statements is true? a. Because there is normally some degree of unemployment, owners of capital have a certain degree of economic power over workers. b. Under most conditions, the higher the wage the lower the profits. Thus, the positions of labor and management are diametrically opposed to one another. c. The average household, in the US, owns enough stock that they are not required to work for a living, although most do anyway. d. All of the above are correct. e. Both a and b are correct. f. Both a and c are correct. g. Both b and c are correct. h. None of the above.

Answer 1

Both a and b are correct

( * Wages are workers' only source of subsistence.so they depend more urgently on being employed than employers depend on employing.so a certain level of unemployment gives owners of Capital economic power over labourers.As stated by Karl Marx, interests of Capital and wage labour are diametrically opposite since the two vary inversely.)

* Average Household in US doesn't own enough stock. As per the data published by the Fed , 10 percent of the families with the highest income own more than 90 percent of the stocks.