Work-Time Lost as a Result of a Strike

question 37

Multiple Choice

Work-time lost as a result of a strike:

• A)is generally less costly in service industries than in durable-goods industries
• B)is estimated to be more costly than the efficiency losses resulting from union-caused labor misallocation
• C)may overstate the cost of a strike if struck employers are able to expand their inventories in anticipation of the strike
• D)may understate the cost of a strike if the work stoppage disrupts production in associated industries