Suppose That a Town Has Two Major Bottling Plants

question 35

Multiple Choice

Suppose that a town has two major bottling plants. One of these bottling plants is unionized and the union has just negotiated a 7% wage increase each year for the next two years. Which of the following is most likely to occur?

• A) The price of labor in the unionized bottling plant will increase, but there will be no changes in the price of labor in the nonunionized bottling plant.
• B) The price of labor will change in both the unionized and nonunionized bottling plants, but no other input markets will be affected.
• C) The price of labor will change in both the unionized and nonunionized bottling plants. Employment of labor and other inputs is also likely to change in both bottling plants.
• D) The only effect will be that the price charged by the unionized bottling plant will increase to cover the additional costs of labor.

---

Definitions:

Voting Rights Act

The Voting Rights Act of 1965 is landmark federal legislation in the United States that prohibits racial discrimination in voting, aiming to ensure fair and equal voting rights for all American citizens.

Eligible Black Residents

Refers to African-American individuals who meet specified criteria or conditions for participation in certain activities, programs, or benefits, such as voting or scholarships.

Strict Scrutiny

The most rigorous standard of judicial review used by courts to evaluate the constitutionality of laws, especially those that infringe on fundamental rights or affect protected classes.

Judicial Review

Judicial review is the doctrine under which legislative and executive actions are subject to review by the judiciary to ensure they comply with the constitution.