To the Extent That Unions Can Transfer Profits from Unionized

question 79

Multiple Choice

To the extent that unions can transfer profits from unionized employers to union workers, they will

• A) reduce the incentive of unionized employers to invest in fixed capital and research.
• B) increase employment in the unionized sector.
• C) reduce the incentive of nonunion firms to invest and expand their output.
• D) increase the productivity of labor in the long run.

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Definitions:

Baratarian Pirates

A group of 19th-century pirates led by Jean Lafitte, who operated out of the Barataria Bay south of New Orleans, and later aided the United States in the War of 1812.

French Revolution

A pivotal period of radical social and political upheaval in France from 1789 to 1799, leading to the decline of monarchies and churches and the rise of democracy and nationalism.

Political Parties

Organized groups of people with similar political aims and opinions, that seek to influence public policy by getting their candidates elected to public office.