Which of the Following Is True About Labor Union Effects

question 45

Multiple Choice

Which of the following is true about labor union effects on labor markets?

• A)The higher wages in the union sector tend to elevate wages indirectly across all sectors of the labor market
• B)Union labor tends to be less productive because the union protects its workers from discipline or firing
• C)Approximately 90% of the wage difference between union and nonunion workers is due to the higher quality of union workers
• D)Labor unions have no documented impacts on labor markets because they are subject to the same labor market forces that other firms face

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Definitions:

Power of Attorney

A legal document that grants one individual (the agent) the authority to act on behalf of another (the principal) in legal or financial matters.

Legal Documents

Legal documents are formal written records that are drafted and executed in accordance with legal requirements, often used to establish rights, obligations, or agreements.

Durable Power

A legal document that grants a designated individual the authority to make decisions on another's behalf, typically in financial or healthcare matters, and often remains in effect even if the grantor becomes incapacitated.

Incapacity

The lack of ability, qualification, or strength to do something; specifically, the legal inability to enter into a contract.