When a Work Force Is Highly Unionized

question 49

Multiple Choice

When a work force is highly unionized:

• A) compensation decisions are based only on performance.
• B) managers have more control in compensation decisions.
• C) workers are likely to disagree with internal and external equity.
• D) pay is typically subject to negotiation and bargaining requirements.

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Definitions:

Quantity Demanded

The amount of a good or service consumers are willing and able to buy at a specific price level, ceteris paribus.

Equilibrium Price

The price level where the supply of goods meets the demand for those goods.

Loanable Funds

The total funds available in the financial markets for borrowing, which come from savings and are used for investment.

Borrowed

Refers to funds or resources obtained temporarily from another party, typically with the obligation of returning or repaying the amount with interest.