The Economic Way of Thinking 13th Edition by David Prychitko, Peter Boettke, Paul Heyne

Exercise 12

If public-opinion surveys show that the majority of Americans regard Inflation as a more serious threat than unemployment:
(a) Does this imply that the majority of Americans would rather be Unemployed in a period of stable prices than employed in a time of rising prices?
(b) If the management of a firm allowed employees to vote on whether the firm should lay off 10 percent of the employees or reduce wage rates by 5 percent, how do you think they would vote? Do you think the outcome of the vote would depend on whether the employees knew in advance exactly who would be laid off?