Which of the Following Is a Reason Why the Union

question 18

Multiple Choice

Which of the following is a reason why the union wage gap might underestimate the actual effect unions have on wages?

• A) Unions typically attract the most productive workers to the application pool.
• B) Nonunion firms may pay higher wages in order to prevent its workers from unionizing.
• C) Nonunion jobs will have excess labor available to them because firms will restrict entry into union jobs, and competition for this excess labor competes down the observed nonunion wage.
• D) Unions target high-paying firms.
• E) The union wage gap can be overestimated but never underestimated.

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Definitions:

Razorback

A sharp, narrow ridge or a serrated series of peaks often found in rugged mountains.

U-Shaped Valley

A type of valley formed by the action of glaciers, characterized by its U-shaped cross-section, unlike the V-shaped valleys formed by rivers.

Cirque

A bowl-shaped, steep-walled mountain basin carved by glaciation, often serving as the birthplace of a glacier.

Moraine

Sediment carried by and deposited by a glacier; also refers to the resulting landform.