"If a Union Is Only Able to Organize a Few

question 191

Multiple Choice

"If a union is only able to organize a few of the firms in an industry, it is unlikely that the union can substantially increase the wages of its members." This statement is

• A) false; unions tend to be stronger when they concentrate on only a few producers in an industry.
• B) false; the demand for unionized workers will be more inelastic if only a few firms in the industry are unionized.
• C) false; all unions can increase the wages of their members.
• D) essentially correct.

Recognize how the elasticity of demand influences the tax burden on consumers.

Assess viewpoints on the incidence of corporate income tax.

Differentiate between the concepts of efficiency loss of a tax and tax revenue.

Comprehend the regressive nature of sales taxes on consumer goods.

---

Definitions:

Escalator Clause

is a contract provision that allows for an automatic adjustment in prices or wages based on fluctuations in certain economic indicators.

Costs Change

Alterations in the financial expenditures associated with producing or obtaining goods and services.

Indirect Costs

Costs that are not directly accountable to a cost object, such as overhead and administrative expenses.

Production Plant

A facility where goods are manufactured or assembled, using labor and machinery.