To the Extent That Unions Can Transfer Profits from Unionized

question 79

Multiple Choice

To the extent that unions can transfer profits from unionized employers to union workers, they will

• A) reduce the incentive of unionized employers to invest in fixed capital and research.
• B) increase employment in the unionized sector.
• C) reduce the incentive of nonunion firms to invest and expand their output.
• D) increase the productivity of labor in the long run.

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Definitions:

Civil Service Employee

An individual who works for a government agency or department, often under a merit-based system as opposed to being appointed or elected.

Privatization

The process of transferring ownership of a business, enterprise, agency, or public service from the government to private individuals or organizations.

Federal Workers

Employees of the federal government who work in various departments and agencies, contributing to the administration and implementation of government policies.

Infrastructure Repairs

The process of fixing and restoring essential public facilities and systems, such as roads, bridges, and water supply systems.