Suppose Union Workers Are Earning More Than Similarly Qualified Nonunion

question 35

Multiple Choice

Suppose union workers are earning more than similarly qualified nonunion workers. From this, we can conclude that

• A) unemployment of union workers must have increased.
• B) unemployment of nonunion workers must have increased.
• C) productivity of union workers must be greater than the productivity of nonunion workers.
• D) Any of the above are possible and we cannot tell which without having more information.

---

Definitions:

Price Variance

The difference between the actual cost of a good or service and its expected cost, often used in budgeting and financial analysis.

Materials Price Variance

The difference between the actual cost of direct materials and the standard cost, used in variance analysis.

Materials Quantity Variance

The difference between the actual quantity of materials used in production and the expected amount, which can impact the cost of goods sold.

Material J

Material J refers to a specific category or type of raw material or input identified with the letter "J" used in manufacturing or production processes.