Regarding the Impact of Unions on Wages of All Workers

question 131

Multiple Choice

Regarding the impact of unions on wages of all workers, which of the following statements is correct?

• A) Approximately 50 percent of our national income is allocated to human capital, while the remaining 50 percent is allocated to physical capital in the form of rents, interest, and corporate profits.
• B) As union membership as a share of the U.S. labor force has declined during the last three decades, the share of national income allocated to physical capital has risen.
• C) Unions have consistently opposed minimum wage legislation because it tends to cause unemployment.
• D) During the past several decades, the share of output going to capital has been virtually constant, even though union membership as a share of the labor force has decreased.

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Definitions:

Net Present Values

A method of evaluating the profitability of an investment by calculating the present value of all expected future cash flows minus the initial investment cost.

Capital Budgeting

Capital budgeting is the process a business undertakes to evaluate potential major projects or investments, analyzing the profitability and risk to decide whether they should proceed.

Worst-case Scenario

A situation where the worst possible outcome occurs, often used in planning and analysis to prepare for and mitigate risks.

Scenario Analysis

A process of analyzing future events by considering alternative possible outcomes (scenarios), often used for strategic planning to understand potential risks and opportunities.