An Increase in the Percentage of the Labor Force That

question 160

Multiple Choice

An increase in the percentage of the labor force that is unionized will cause average wages for all workers to rise because

• A) union labor is more productive.
• B) profit levels are lowered to increase wages.
• C) strike threats promote wage increases.
• D) This is a trick question because greater unionization does not imply higher average wages.

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Definitions:

Unrealized Profits

Profits that have been earned on paper through an investment's increased value but have not yet been realized through a sale.

After-Tax Dollar Value

The net value of an investment or income after all applicable taxes have been subtracted.

Tax Rate

The percentage at which an individual or corporation is taxed by the government on income or profits.

Dividends Received

Income payments received by shareholders from their investments in the form of dividends from corporations.