Unions Often Encourage the Buying Public to "Look for the Union

question 66

Multiple Choice

Unions often encourage the buying public to "look for the union label" primarily because

• A)they feel that only U.S.and/or union-made goods are of high quality.
• B)they feel that it is un-American to buy goods from foreign producers.
• C)doing so may increase demand for the product they produce, which in turn may increase the wage rate paid to union employees.
• D)they realize that Americans are too busy to take time to gather all the important information about a product and these labels are a way of informing the buying public that union-made goods are well made.

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Definitions:

Direct Labour-Hours

The total hours worked by employees directly involved in the manufacturing process, used as a basis for assigning labor costs to products.

Contribution Margin

The difference between sales revenue and variable costs, representing the portion of sales that contributes to covering fixed costs.

Production Constraint

A limit to the amount or volume of production, often caused by the availability of resources, technology, or market demand.

Machine Hours

A measure of the amount of time a machine is operated in the production process.