If a Firm's Demand for Labor Is Elastic, a Union-Negotiated

question 69

Multiple Choice

If a firm's demand for labor is elastic, a union-negotiated wage increase will

• A)necessarily be inflationary.
• B)cause the firm's total payroll to increase.
• C)cause the firm's total payroll to decline.
• D)cause a shortage of labor.

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Definitions:

Entity

A broad term that can refer to any individual, company, organization, or institution that has a separate legal existence.

Major Line Of Business

The primary area or category of product or service offering that generates the most revenue for a company.

Discontinued Items

Financial reporting of components of an entity that have been disposed of or classified as held for sale.

Reported Net Income

The total profit of a company after all expenses and taxes have been subtracted from total revenue, as presented in its financial statements.