Other Things Being Equal, a Labor Union Will Find It

question 21

Multiple Choice

Other things being equal, a labor union will find it harder to obtain a wage increase for its members the

• A)less elastic is the demand for the product labor produces.
• B)easier it is to substitute other resources for labor.
• C)greater the amount of unionization in the industry.
• D)less elastic is the demand for labor.

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Definitions:

Direct Method

a way of preparing the cash flow statement where actual cash flows from operating activities are reported rather than adjusting net income on an accrual basis.

Consolidation Process

The procedure of combining the financial statements of separate subsidiary entities into those of the parent company to present as one financial statement.

Shareholders' Equity

The residual interest in the assets of an entity after deducting liabilities, representing the owners' claim on the company's assets.

Goodwill

An intangible asset that arises when a business is acquired for more than the fair value of its net identifiable assets.