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:

Trial Balance

A financial statement that lists all balances in a firm's general ledger accounts at a specific point in time to verify that debits equal credits.

Account Balance

The amount of money in a financial repository, such as a bank account, at any given moment.

Interest Receivable

An accounting term referring to the interest income that has been earned but not yet received in cash.

Accounts Payable

Liabilities of a business that represent amounts due to suppliers or creditors for goods and services received but not yet paid for.