The Next Question Is Based on the Following Table

question 18

Multiple Choice

The next question is based on the following table:
Wage Increases in First, Second, and Third Years of Union Contracts, United States, 1997-2003

-What can be said on the basis of the union contract settlement data shown?

• A) Unions are becoming much more powerful in their ability to negotiate wage increases.
• B) Price levels in the country are rising rapidly.
• C) The most recently negotiated wage increase for a given year is below the average increase prevailing under continuing contracts for that year.
• D) Wage rates adjust immediately throughout the economy in response to changing labor market conditions.
• E) Labor markets are tight, so firms are increasing employment.

---

Definitions:

Series-Completion

A cognitive task where individuals must identify the missing part in a sequential pattern.

Mental Set

A psychological tendency to approach situations in a certain way based on previous experiences and context, which can sometimes inhibit problem-solving.

Functional Fixedness

A mindset that limits an individual's use of an object to its conventional purpose alone, inhibiting their capacity for innovation and solving challenges.

Functional Fixedness

A cognitive bias that limits a person's ability to use an object only in the way it is traditionally used, hindering problem-solving.