Which of the Following Statements Is TRUE

question 112

Multiple Choice

Which of the following statements is TRUE?
I. Union members earn higher wages because unions restrict the supply of labor.
II. Unions are similar to cartels in that they restrict competition among workers.
III. Countries with more union members earn more than countries with fewer union members.

• A) I and II only
• B) I, II, and III
• C) II and III only
• D) III only

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Definitions:

Stock Split

A stock split is an action taken by a company to divide its existing shares into multiple ones to boost the liquidity of the shares, without changing the overall value of shareholders' equity.

Stock Dividend

A dividend payment made in the form of additional shares rather than a cash payout.

Retained Earnings

Profits that a company has earned to date, less any dividends or other distributions paid to shareholders, often reinvested back into the company.

Share Capital

The funds raised by a company through the issuance of shares, representing the ownership of the company.