Because the Demand for a Broadly Defined Product Line (Automobiles

question 404

Multiple Choice

Because the demand for a broadly defined product line (automobiles, for example) is less elastic than the demand for a more narrow product category (Fords, for example) , a union will be better able to raise wages without large unemployment effects when

• A) it has organized an entire industry rather than only one firm.
• B) it organizes only a few firms in each industry.
• C) it bargains with all firms in a narrow product line but ignores the rest of the industry.
• D) only a small part of the industry that makes the broadly defined product is unionized.

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Definitions:

Preferred Dividends

Dividends that are paid out to preferred shareholders at a fixed rate before any dividends are paid to common shareholders.

Common Dividends

Payments made to shareholders out of a corporation's earnings, reflecting the portion allocated to holders of common shares.

Liquidation

The process of converting assets into cash, often during the winding down of a business or the selling off of stock.