Which of the Following Will Limit the Ability of a Union

question 304

Multiple Choice

Which of the following will limit the ability of a union to push the wages of its members much above competitive levels?

• A) the presence of nonunion firms that produce the same product as the unionized labor
• B) foreign competition in the market for the product produced by the unionized labor
• C) a highly elastic demand for the product supplied by the unionized labor
• D) all of the above

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Definitions:

Economic Downturn

A period of reduced economic activity characterized by declining GDP, unemployment, and falling prices.

Monetary Policy

The process by which a central monetary authority, like a central bank, controls the supply of money in an economy, primarily to influence inflation and economic growth.

Fiscal Policy

The application of tax policies and government expenditure to affect economic conditions.

Agriculture Adjustment Act

A United States federal law of the New Deal era designed to boost agricultural prices by reducing surpluses.