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:

Subchapter S Corporation

A form of corporation in the United States that meets specific Internal Revenue Code requirements, allowing it to be taxed as a pass-through entity.

Constituents

Individuals or groups that have a stake or interest in the actions and success of an organization, business, or political entity.

For-Profit Organization

An entity that operates with the primary goal of earning profit for its owners or shareholders.

Privately Owned

Describes businesses or assets owned by individuals or companies and not by the government or the public.