Which of the Following Factors Will Reduce Considerably the Ability

question 202

Multiple Choice

Which of the following factors will reduce considerably the ability of a union to raise the wages of its workers?

• A) an elastic demand for the goods produced by union labor
• B) weak foreign competition for the product union labor helps to produce
• C) high tariffs on goods produced by the union labor
• D) favoritism in the allocation of government contracts to firms that employ union labor

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Definitions:

Net Cash Inflows

The amount of cash that a business receives over a period, minus the amount of cash outflows.

Inventory Cost

Inventory cost includes the costs associated with purchasing, storing, and managing goods that a business intends to sell; it typically comprises the purchase price, warehousing costs, and any other expenses related to holding inventory.

NPV Rule

The principle that an investment is considered acceptable if its net present value (NPV) is positive, under the context of discounted cash flow analysis.

Decision-Maker

An individual or group responsible for making choices that will impact themselves or others, often involving allocation of resources or resolutions in the face of challenges.