When Unions Raise Wages Beyond What Productivity Increases Would Permit

question 273

Multiple Choice

When unions raise wages beyond what productivity increases would permit,

• A) more union workers are employed.
• B) there are higher wages for all union members.
• C) there is a redistribution of income from low- to high-seniority workers.
• D) nonunion workers wages in the economy also increase.

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Definitions:

Amortization

The gradual reduction of a debt over a period through regular payments covering interest and principal components.

Deferred Loss

A loss that has been incurred but is not immediately recorded in the financial statements.

Plan Assets

Assets that are held by a retirement or pension plan for the exclusive purpose of paying benefits to participants as they become due.

Expected Return

The anticipated profit or loss from an investment over a given period, taking into account the probability of various outcomes.