An Important Unanswered Question About the Role of Unions in Developed

question 115

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

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Definitions:

Lipids

A broad group of naturally occurring molecules that include fats, waxes, sterols, and fat-soluble vitamins among others, used for energy storage and as structural components of cell membranes.

Organic Acids

Organic acids are a group of acidic compounds that contain carbon and are found in many plants and animals, essential in various biochemical processes.

Inorganic Ions

Charged atoms or molecules that do not contain carbon-hydrogen bonds, often playing crucial roles in physiological processes.

Fingerprint

Unique patterns formed by ridges on the tips of fingers, used for identifying individuals.