Which of the Following Best Describes the Effects of Unions

question 130

Multiple Choice

Which of the following best describes the effects of unions in the United States today?

• A) The average union worker works more hours but earns a lower annual income than the average nonunion worker.
• B) The average union worker works fewer hours but earns a higher annual income than the average nonunion worker.
• C) The average union worker works more hours and earns a higher annual income than the average nonunion worker.
• D) The average union worker works fewer hours and earns a lower annual income than the average nonunion worker.

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Definitions:

Depreciation Expense

The allocation of the cost of a tangible asset over its useful life, reflecting the usage, wear and tear, or obsolescence of the asset.

Effective Tax Rate

The average percentage that companies or individuals pay in taxes on their total income.

Goodwill

An intangible asset representing the excess of purchase price over the fair market value of identifiable assets and liabilities acquired in a business combination.

Equity Method

An accounting technique used to record investments in other companies, where the investment is initially recorded at cost and adjusted thereafter for the proportionate share of profit or loss and dividends received.