Since the Demand for a Narrowly Defined Product Class (Fords

question 38

Multiple Choice

Since the demand for a narrowly defined product class (Fords, for example) is more elastic than the demand for a broadly defined product class (all automobiles) , a union will be better able to raise the wages of its members without causing a reduction in their employment when

• A) it can organize an entire industry, rather than just selective firms within the industry.
• B) it concentrates its organizational efforts on a single firm, ignoring the rest of the industry.
• C) the demand for the product is highly elastic.
• D) there are many good substitutes for union labor.

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Definitions:

Philip Zimbardo

An American psychologist known for his research on social psychology, notably the Stanford prison experiment.

Simulated Prison

A psychological experiment setup designed to study the effects of perceived power, focusing on the struggle between prisoners and prison officers.

Prison Guard

An individual responsible for the supervision, safety, and security of prisoners in a cell, ward, or prison yard.

Prisoner

An individual who is held in confinement as a punishment for a crime or while awaiting trial.