Clustering

question 29

Multiple Choice

Clustering:

• A)occurs when government resources are diverted toward one particular sector of the economy.
• B)takes place when new firms enter regions already thick with other firms in the same or similar industries.
• C)occurs when there is a single firm in the economy that can charge different prices for the same product.
• D)implies that consumers with similar tastes and preferences tend to stay in the same region.
• E)occurs when all the firms in the industry sell identical commodities and charge identical prices for these commodities.

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Definitions:

Collective Bargaining Agreement

A written contract negotiated through collective bargaining by employees, through their representatives, and their employer, dictating the terms of employment.

Competitive Labor Market

A labor market characterized by numerous employers and job seekers, where wages are determined by supply and demand for labor.

Unionization

The process by which workers join together to form a union in order to collectively bargain with their employer regarding wages, benefits, and working conditions.

Essential Services

Services deemed crucial for public welfare that cannot be interrupted, like healthcare and public transport, often subject to special labor relations rules regarding strikes.