Large Union Wage Increases in Declining Sectors Can Be Explained

question 10

Multiple Choice

Large union wage increases in declining sectors can be explained by

• A) industries' inability to substitute capital for labor while product demand is falling.
• B) unions' decision to make wage gains more important than employment guarantees.
• C) industries' unwillingness to negotiate with unions.
• D) industries' ability to sell used capital if necessary.

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Definitions:

Psychosomatic

Pertaining to or involving both mind and body; usually refers to physical illnesses or symptoms that are influenced by emotional or mental factors.

Somatic

Relating to or affecting the body, especially as distinct from the mind or emotions.

Somatoform

Disorders characterized by physical symptoms that suggest a medical condition, but are not fully explained by a medical condition, substance use, or another mental disorder.

Psychosis

A mental disorder characterized by a disconnection from reality, which might include hallucinations, delusions, and impaired thought processes.