The Demand for Unionized Labor Will Generally Be More Elastic

question 58

Multiple Choice

The demand for unionized labor will generally be more elastic, and it will be more difficult for the union to achieve above-equilibrium wages when

• A) there are many close substitutes for the unionized workers.
• B) trade barriers limit the importation of the product produced by the unionized workers.
• C) the cost of employing the unionized workers is a small part of the total cost of product that they produce.
• D) the demand for the product produced by the unionized workers is highly inelastic.

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Definitions:

Risk Level

The degree of uncertainty associated with the potential for loss or undesirable outcomes in an activity or decision.

Market Efficiency

A condition in financial markets where prices fully reflect all available information, leading to assets being priced accurately and trades being executed fairly.

Financial Reporting

The process of producing statements that disclose an organization's financial status to management, investors, and the government.

Semi-Strong Form

The semi-strong form is a level of market efficiency theory suggesting that asset prices reflect all publicly available information.