How Does Competition from Nonunion Firms and Foreign Producers Affect

question 108

Multiple Choice

How does competition from nonunion firms and foreign producers affect the ability of a union to increase the wages of its members?

• A) Such competition reduces the ability of a union to achieve wage increases.
• B) Such competition does not affect the ability of a union to achieve wage increases.
• C) Such competition will increase the strength of a union if it produces a product sold in the domestic market but reduce the strength of the union if it produces an export product.
• D) The effect of this type of competition will be entirely dependent on the elasticity of demand for labor in the domestic market.

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Based on total wages and self-employment income during the year; the amount of earnings it takes to earn a credit changes each year; in 2009, a person had to earn $1,090 in covered earnings to get one credit; people born after 1929 need 40 credits in their lifetime to qualify for Social Security benefits.

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