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.

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Definitions:

Consensus

The general agreement or collective unanimity among members of a group or society.

Hereditary Leadership

A system of governance or organizational leadership where authority is passed down through family lines.

Traditional Authority

Traditional authority is a form of leadership in which power is derived from established customs, cultural heritage, and historical precedence.

Tertiary Sector

A segment of the economy focused on providing services rather than producing goods, including sectors like retail, entertainment, and financial services.