Which of the Following Is the Best Theoretical Explanation for Why

question 3

Multiple Choice

Which of the following is the best theoretical explanation for why strikes occur?

• A)The firm has a downward sloped resistance curve.
• B)The union and firm know that it is impossible to eventually negotiate an outcome on the contract curve.
• C)The union's leadership wants to please management.
• D)The union doesn't know how valuable labor is to the firm.
• E)The firm wants to minimize labor costs.

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Definitions:

Constitutional

Relating to the established laws and principles of a governmental constitution that define the nature and structure of political and civil institutions and govern the legality of governmental actions.

Laws

Formal rules and regulations, established by legislative bodies or by custom, which govern behavior and are enforceable by penalties.

Rules

Established guidelines or principles governing conduct or procedure within a particular area or activity.

Constitutional Democracy

A Constitutional Democracy is a form of government in which the powers of the majority are limited by a constitution that protects the rights and freedoms of individuals and minority groups.