Which of the Following Statements About Two-Tier Plans Is True

question 17

Multiple Choice

Which of the following statements about two-tier plans is true?

• A)This plan is in accordance with the most basic precept of unionization.
• B)In a two-tier plan, newer employees receive higher wages than their higher seniority peers working on the same or similar jobs.
• C)Two-tiered wage system increases solidarity in the union.
• D)This wage structure leads to employee satisfaction in the workplace.
• E)Two-tiered wage systems can lead to hostility within the organization.

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Definitions:

Labor Needed

The quantity and type of workforce required to produce a certain level of output or to perform specific tasks.

Complementary Input

Goods or services that enhance the value or efficiency of another product or service when used together.

Demand Curve

A graph that shows the relationship between the price of a product and the quantity of the product demanded.

Substitution Effect

The substitution effect occurs when consumers replace more expensive items with less expensive alternatives as prices change, thereby altering their consumption patterns.