Suppose the United Auto Workers' Union Succeeded in Obtaining a 10

question 46

Multiple Choice

Suppose the United Auto Workers' Union succeeded in obtaining a 10 percent increase in the wages of its workers and that the wage increase caused automobile prices to rise. Employment in the auto industry would be most likely to decline significantly if

• A) the demand for American-made automobiles was highly elastic.
• B) the supply of foreign-produced automobiles was highly inelastic.
• C) American consumers considered foreign automobiles a poor substitute for American automobiles.
• D) the demand for American automobiles was relatively constant and highly inelastic.

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Definitions:

Tuition Increase

A rise in the fee that institutions of higher education charge students for their courses.

Chi-square Statistic

A statistical measure used in tests of independence and goodness of fit, evaluating how well observed data fit expected frequencies in categorical variables.

Strongly Opposed

A stance or position wherein someone is deeply against or in disagreement with a particular idea or proposal.

Tuition Increase

The rise in the cost of attending a college or university, typically announced on an annual basis.