Which of the Following Will Limit the Ability of a Union

question 304

Multiple Choice

Which of the following will limit the ability of a union to push the wages of its members much above competitive levels?

• A) the presence of nonunion firms that produce the same product as the unionized labor
• B) foreign competition in the market for the product produced by the unionized labor
• C) a highly elastic demand for the product supplied by the unionized labor
• D) all of the above

---

Definitions:

Loanable Funds

The money available for borrowing in the financial market, influenced by savings, borrowing, and interest rates.

Time Preference

The economic theory that individuals prefer to receive goods or services sooner rather than later, all else being equal.

Federal Reserve

The central bank of the United States, responsible for monetary policy, regulation of financial institutions, and ensuring financial system stability.

Dividend Yield

A financial ratio that shows how much a company pays out in dividends each year relative to its stock price.