The Experience of the Teamsters in the Late 1970s and Early

question 183

Multiple Choice

The experience of the Teamsters in the late 1970s and early 1980s suggests that

• A) there are few restraints on the ability of a strong union to increase the wages of its members.
• B) product market competition with goods made from (or services provided by) nonunion labor significantly limits the ability of a union to get increased wages for its members.
• C) higher wages tend to stimulate aggregate demand, which makes it easier for a union to gain still higher wages.
• D) wages are established by the relative skill of union and management negotiators, independent of market conditions.

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Definitions:

Domestic Producers

Companies or individuals that produce goods and services within their home country.

Foreign Producers

Foreign producers are companies or individuals who produce goods or services outside the domestic market.

Tariff

Government-imposed duties on imported or, less commonly, exported goods, often established to protect domestic industries and to generate revenue.

Quota

A limit set by a government on the quantity of a particular product that can be imported or exported within a given timeframe, used for trade regulation.