"If a Union Is Only Able to Organize a Few

question 191

Multiple Choice

"If a union is only able to organize a few of the firms in an industry, it is unlikely that the union can substantially increase the wages of its members." This statement is

• A) false; unions tend to be stronger when they concentrate on only a few producers in an industry.
• B) false; the demand for unionized workers will be more inelastic if only a few firms in the industry are unionized.
• C) false; all unions can increase the wages of their members.
• D) essentially correct.

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Definitions:

Stated Value

A specified value assigned to no-par-value stock by the company's board of directors.

General Journal

A comprehensive accounting record where all financial transactions are initially recorded, using a double-entry accounting system.

Nonparticipating

typically refers to an insurance or investment product feature where the holder does not have the right to receive dividends or bonuses generated from the underlying pool of assets.

Par Value

The nominal or face value of a stock or bond, as stated by the issuing company, which may bear no relation to its market value.