Which of the Following Is NOT a Factor That Has

question 116

Multiple Choice

Which of the following is NOT a factor that has contributed to declining private-sector differential between union and nonunion wages in the U.S. since 1980?

• A) Globalization of the production process
• B) Improved ability of firms to substitute capital for labor in production
• C) Adoption of two-tiered wage and benefit structures by unionized firms
• D) Declines in the unemployment and health insurance premiums paid by union workers

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Definitions:

Market Outcomes

The results of economic transactions and interactions in a market, including prices and quantities of goods and services traded.

Scarce Resources

Resources that are limited in availability and can run out if not used efficiently, leading to the necessity of making choices on how to allocate them.

Invisible Hand

A metaphor introduced by Adam Smith to describe the self-regulating nature of the marketplace.

Economic Prosperity

The state of flourishing, thriving, good fortune, and/or successful social status in terms of wealth, health, and happiness.