When Unions Raise Wages Beyond What Productivity Increases Would Permit

question 273

Multiple Choice

When unions raise wages beyond what productivity increases would permit,

• A) more union workers are employed.
• B) there are higher wages for all union members.
• C) there is a redistribution of income from low- to high-seniority workers.
• D) nonunion workers wages in the economy also increase.

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Definitions:

Risky Asset

An investment that holds a degree of uncertainty regarding its returns or principal amount.

Non-Risky Asset

A financial asset with a guaranteed or highly predictable return rate, such as government bonds.

Expected Return

The anticipated gain or loss for an investment over a given period, often expressed as a percentage.

Standard Deviation

A gauge for the degree of spread or discrepancy in a series of data points.