How Do Strong Trade Unions and Legislation That Limits Redundancies

question 45

Multiple Choice

How do strong trade unions and legislation that limits redundancies affect the economy?

• A) Opportunities to use advanced technology or new capital machinery may be blocked by trade unions.
• B) The level of wages paid to workers in the economy may fall below the subsistence wage.
• C) Inefficient practices in the economy can be removed easily, leading to increases in productivity.
• D) Economic resources can easily be allocated according to where they are valued the most.

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Definitions:

Dividend Growth Rate

Dividend Growth Rate is the annualized percentage rate of growth of a company's dividend payments, indicating the steady increase in dividends paid out to shareholders over time.

External Equity

Financing obtained from sources outside a company, such as public stock offerings or venture capital investments.

Flotation Cost

Flotation cost is the total charges associated with creating and issuing new shares of stock, encompassing underwriting, legal, and registration fees.

Equity Capital

Funds raised by a company in exchange for shares of ownership, representing the value of shareholders' equity.