The Demand for Unionized Labor Will Generally Be More Elastic

question 58

Multiple Choice

The demand for unionized labor will generally be more elastic, and it will be more difficult for the union to achieve above-equilibrium wages when

• A) there are many close substitutes for the unionized workers.
• B) trade barriers limit the importation of the product produced by the unionized workers.
• C) the cost of employing the unionized workers is a small part of the total cost of product that they produce.
• D) the demand for the product produced by the unionized workers is highly inelastic.

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Definitions:

Incremental Approach

A decision-making process that focuses on analyzing the financial impact of small or incremental changes in operations or business activities.

Budgeting

The process of creating a plan to spend your money, outlining projected income and expenses.

Self-Imposed Budget

A budget that is created with the input and agreement of lower and middle management employees, improving commitment and enforcement.

Control

The process of monitoring and regulating operations and activities to ensure they meet certain standards or objectives.