An Important Unanswered Question About the Role of Unions in Developed

question 52

Multiple Choice

An important unanswered question about the role of unions in developed economies is whether the presence of unions affects long- run productivity.There is some evidence to suggest that the presence of a union

• A)decreases the human capital of unionized workers,and therefore reduces long- run productivity.
• B)reduces the expected profitability of installed capital and therefore leads to reduced capital investment by firms.
• C)increases the human capital of unionized workers,which leads to increased long- run productivity for the firm.
• D)reduces the level of employment (because of the union- wage premium)and thus raises the marginal product of labour.
• E)reduces the demand for labour and therefore the demand for physical capital.

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Definitions:

Dependent Variable

The variable in an experiment or study that is expected to change as a result of changes in the independent variable.

Predicted Values

The values estimated using a statistical model or algorithm, representing the expected outcome.

Coefficient of Determination

A statistical measure, often denoted as R-squared, that represents the proportion of the variance in the dependent variable that is predictable from the independent variable(s).

Independent Variable

A variable in an experiment or analysis that is manipulated or categorized to observe its effect on a dependent variable.