When a Union Successfully Raises the Wages of Its Members

question 111

Multiple Choice

When a union successfully raises the wages of its members, it will also

• A) increase total productivity, which will generally increase in proportion to the wage rate.
• B) encourage employers to purchase more of the union labor.
• C) increase the share of income allocated to labor as opposed to capital.
• D) increase the employer's incentive to find substitutes for union labor.

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Definitions:

Processing Department

A division within a manufacturing operation that is responsible for a specific set of tasks or processes aimed at transforming raw materials into finished products.

Materials

The raw substances or components used in the manufacturing process to create a finished product.

Equivalent Units

A concept in cost accounting used to allocate costs to units of production when a process involves partial completion of units at the end of an accounting period.

Materials

Substances or components that are used in the manufacturing or production process to create finished goods.