If the United Auto Workers Union Can Obtain a Substantial

question 57

Multiple Choice

If the United Auto Workers union can obtain a substantial wage increase for auto workers, there will be a(n) :

• A) decrease in the supply of automobiles, which is a shift to the right of the supply curve.
• B) decrease in the supply of automobiles, which is a shift to the left of the supply curve.
• C) increase in the supply of automobiles, which is a shift to the right of the supply curve.
• D) increase in the supply of automobiles, which is a shift to the left of the supply curve.

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Definitions:

Market Value

The ongoing rate at which an asset or service can be sold or acquired in the market.

Stock Dividends Distributable

Represents shares of a company's stock that have been declared as dividends but have not yet been distributed to shareholders.

Dividends Declared

Profits announced by a company's board of directors to be distributed among shareholders.

Legal Capital

The minimum amount of equity that a company must maintain to protect creditors, often required by law.