If a Firm Is Able to Produce the Same Amount

question 294

Multiple Choice

If a firm is able to produce the same amount of output even after reducing its labor workforce, this implies that the firm has

• A) unplanned inventories.
• B) excess capital.
• C) excess labor.
• D) planned inventories.

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Definitions:

Labor Unions

Organizations that represent the collective interests of workers in negotiations with employers over wages, working conditions, and other employment matters.

NLRA

The National Labor Relations Act, which is legislation enacted to protect the rights of employees and employers, to encourage collective bargaining, and to curtail certain private sector labor and management practices.

Bargain

An agreement between two or more parties on the terms of a deal, typically involving the exchange of goods, services, or financial assets.

Economic Pressure

The coercive use of financial resources to influence or compel behavior, often in the context of negotiation or conflict.