Which of the Following Is True About a Closed Shop

question 16

Multiple Choice

Which of the following is true about a closed shop?

• A) It requires that any bargaining-unit employee who was hired after a date specified in the agreement must become a union member within a specific time as a condition of continued employment.
• B) It requires that any bargaining-unit employee employed with the firm for a specific time must become a union member as a condition of continued employment.
• C) It requires that employers hire only union members.
• D) It requires that any bargaining-unit employee who is not a union member must pay a service fee to the union for its representation activities.

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Definitions:

Capacity Utilization Rate

A measure of how well a company or economy is using its productive capacity, expressed as a percentage of total potential output that is actually being realized.

Recessions

Periods of temporary economic decline during which trade and industrial activity are reduced.

Gross Investment

The total amount spent on new capital assets, before accounting for depreciation, indicating the level of investment in an economy's productive capacity.

Net Investment

The total a company invests in new capital assets, minus the cost of depreciation.