Which Statement Is Most TRUE About the Impact of Unions

question 217

Multiple Choice

Which statement is most TRUE about the impact of unions on wage levels in the Untied States?

• A) Unions have had no impact on the wage levels of their workers.
• B) Unions have tended to increase the hourly wage rates of their members relative to nonunion workers by an average of about $2.25.
• C) Unions have contributed to increased income inequality in the United States by raising corporate profits.
• D) The union/nonunion wage differential tends to decrease during a recession.

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Definitions:

Relatively Inelastic

Describes a situation where the demand for a good or service only slightly changes in response to price changes.

Relatively Elastic

A description of a situation where the demand for a good or service significantly changes in response to a change in price.

Excise Tax

A tax on the sale or production for sale of specific goods within a country, typically on commodities like alcohol and tobacco.

Specific Items

Goods or commodities that are distinctly identified and provided in a market or contract.