Which One of the Following Does Not Help to Explain

question 25

Multiple Choice

Which one of the following does not help to explain why union workers receive more fringe benefits than nonunion workers?

• A)The unionized firm is willing to pay both higher wages and fringe benefits to avoid the costs of a strike
• B)The higher incomes of union workers allow them to "purchase" more fringe benefits
• C)Unions are primarily composed of younger workers who have more to gain from long-term compensation such as the kind provided by union pension plans
• D)As collective voice institutions,unions may better formulate fringe benefit proposals,inform their membership of their worth,and communicate these desires to the firm

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Definitions:

Capitalism

An economic system in which productive resources are owned privately and goods and resources are allocated through market prices.

Exchange

The act of giving one thing and receiving another (especially of the same type or value) in return, often referring to the trading of goods, services, or currencies.

Comparative Advantage

The ability of an individual, firm, or country to produce a good or service at a lower opportunity cost than competitors.

Specialization

The process of concentrating on and becoming expert in a particular subject or skill within production or labor.