Studies Have Shown That Nonunion Workers Earn About

question 267

Multiple Choice

Studies have shown that nonunion workers earn about

• A) 10 to 20 percent more than union workers in similar jobs.
• B) 10 to 20 percent less than union workers in similar jobs.
• C) 40 to 50 percent more than union workers in similar jobs.
• D) 40 to 50 percent less than union workers in similar jobs.

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Definitions:

Labor

The human effort, both physical and mental, used in the production of goods and services, considered one of the main factors of production.

Deadweight Loss

A loss in total societal welfare that occurs when market equilibrium is not achieved or when market imperfections exist, leading to inefficient allocation of resources.

Relatively Inelastic

Describes a situation where the demand for a good or service changes by a smaller percentage than changes in its price.

Deadweight Loss

A situation where inefficiency in the market leads to a loss of total social welfare, typified by a gap between the supply and demand curves.