If W_u Is the Union Wage and W_n Is the Nonunion

question 6

Multiple Choice

If W_u is the union wage and W_n is the nonunion wage,the pure union wage advantage is:

• A)\[\frac { W _ { n } - W _ { u } } { W _ { u } } \times 100\]
• B)\[\frac { W _ { n } } { W _ { u } } \times 100\]
• C)\[\frac { W _ { u } - W _ { n } } { W _ { n } } \times 100\]
• D)\[W _ { n } - W _ { u }\]

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Definitions:

Graduated-Payment Mortgage

A mortgage that has a fixed interest rate during the life of the mortgage; however, the monthly payments made by the mortgagor increase over the term of the loan.

Variable Interest

An interest rate on a loan or security that can change over time based on the underlying benchmark interest rates.

Security Interest

A creditor’s right to use collateral to recover a debt.

Security Agreement

A written agreement that creates a security interest.