If a Firm Was Owned by Its Employees

question 5

Multiple Choice

If a firm was owned by its employees,

• A) there is a higher probability that wage reductions would outweigh layoffs.
• B) those in charge would not act any differently than regular owners; there would still be layoffs.
• C) those not in charge would remain risk neutral.
• D) wage reductions would be lower than if the firm was run for profit.

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Definitions:

Haymarket Affair

A significant event in labor and anarchist history that occurred in 1886 in Chicago, marked by a rally that turned violent when a bomb was thrown, leading to deaths of police officers and protesters.

Historical Significance

The importance attributed to a past event, person, or invention in shaping history, cultures, or society, often used to determine what is taught or commemorated.

Great Railroad Strike

A widespread labor revolt in 1877 across the United States against major railroad companies, sparked by wage cuts amidst harsh working conditions.

Historical Significance

The quality of being important or noteworthy in history due to having a profound impact on events, developments, or historical figures.