Which of the Following Explanations Would Most Likely Explain the Difficulties

question 37

Multiple Choice

Which of the following explanations would most likely explain the difficulties faced by labor unions since 1980?

• A) The loss of once-unionized manufacturing jobs to low-wage countries.
• B) There have been high levels of unemployment.
• C) The intensity of international competition has decreased.
• D) Trends toward less flexible production have begun.

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Definitions:

Comparative Advantage

The ability of a country, individual, or company to produce a good or service at a lower opportunity cost compared to others.

Trade

The act of buying, selling, or exchanging goods and services between people or countries.

Market Failure

Situation in which an unregulated competitive market is inefficient because prices fail to provide proper signals to consumers and producers.

Incomplete Information

A situation in economics where all parties in a transaction do not have full and equal knowledge.