Since the Demand for a Narrowly Defined Product Class (Fords

question 38

Multiple Choice

Since the demand for a narrowly defined product class (Fords, for example) is more elastic than the demand for a broadly defined product class (all automobiles) , a union will be better able to raise the wages of its members without causing a reduction in their employment when

• A) it can organize an entire industry, rather than just selective firms within the industry.
• B) it concentrates its organizational efforts on a single firm, ignoring the rest of the industry.
• C) the demand for the product is highly elastic.
• D) there are many good substitutes for union labor.

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Definitions:

Perspire

The process by which sweat glands in the skin produce sweat, allowing the body to regulate its temperature.

Classification Category

A level or rank in a systematic organization used to group entities with common characteristics, such as in biological taxonomy.

Species

The basic unit of biological classification, defined as a group of organisms capable of interbreeding and producing fertile offspring.

Extinction

The permanent loss of all members of a species from the earth, leading to a decrease in biodiversity.