Which of the Following Statements About the North American Agreement

question 34

Multiple Choice

Which of the following statements about the North American Agreement on Labor Cooperation (NAALC) is false?

• A) The NAALC is a side agreement of NAFTA that deals with labor principles.
• B) The NAALC has been judged to be very successful due to the increased cooperation it has fostered between NAFTA member nations in dealing with labor relations problems.
• C) It is difficult to sanction the individual national governments when they violate NAALC labor principles.
• D) The NAALC provides for arbitration of occupational safety and health, child labor, and minimum wage issues.
• E) No worker has ever been reinstated nor has any financial sanction ever been imposed as a result of a NAALC case.

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Definitions:

Utility Maximizing

Acting in a way to achieve the highest level of satisfaction possible with available resources.

Demand For Labor

The total amount of labor that employers want to hire at various wage rates, contingent on factors such as technology, the price of the goods being produced, and the availability of other inputs.

Reduced Wage

A wage that is decreased from a previous level, often due to economic pressures or changes in job responsibilities.

Income Effect

The alteration in a person's or economic system's earnings and the effect of this alteration on the demand for a particular product or service.