A Union Would Be More Effective at Bargaining a Wage

question 4

Multiple Choice

A union would be more effective at bargaining a wage increase for its members:

• A) if the share of labour costs in total costs is greater
• B) if the product demand is less elastic
• C) if the degree of substitutability between labour and capital is greater
• D) if the product demand is less responsive to a wage change.
• E) if the supply of capital.is more elastic

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Definitions:

Imports of Mexican Goods

Refers to the goods and services brought into one country from Mexico for trade or sale.

Gold Standard

A monetary system in which the value of a country's currency is directly linked to the amount of gold held in reserve.

Domestic Price

The price of a good or service within a country, determined by domestic demand and supply.