A Rise in the Minimum Wage Increases the Demand for Union

question 368

Multiple Choice

A rise in the minimum wage increases the demand for union labor because this policy change

• A) lowers the wage rate paid to union labor.
• B) raises the productivity of union labor.
• C) lowers the cost of a substitute for union labor.
• D) raises the cost of a substitute for union labor.

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Definitions:

Assembly Line

A manufacturing process in which parts are added to a product in a sequential manner to create a finished product efficiently.

Substantial Decentralization

The process or policy of distributing or dispersing functions, powers, people, or things away from a central location or authority.

Horizontal Specialization

Division of labor where tasks are divided into specialized jobs or roles at the same level in an organizational hierarchy.

Adhocracy

An organizational structure characterized by flexibility, employee autonomy, and an emphasis on innovation and creativity.