Labor Unions Are Restrained in Their Wage Demands Because

question 48

Multiple Choice

Labor unions are restrained in their wage demands because

• A) legislation limits annual increases in nominal wages to 6 percent.
• B) the labor demand curve is downsloping.
• C) marginal wage cost curves lie above labor supply curves in most labor markets.
• D) most unions deal with monopsonists who have superior bargaining power.

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Definitions:

Liable

Refers to the legal responsibility or obligation to do something or to make amends for something.

Injured Ankle

Typically refers to physical harm or damage to the ankle joint, which can involve bones, ligaments, or muscles.

Failure to Remove

The inability to eliminate or take away something as required or expected.

Act of God

An event outside of human control, such as a natural disaster, for which no one can be held responsible.