The Allocative Efficiency Loss Associated with Unions Arises Because

question 11

Multiple Choice

The allocative efficiency loss associated with unions arises because:

• A)job losers in the union sector take away jobs from more productive workers in the nonunion sector
• B)the value of lost output in the union sector is greater than the value of any additional output in the nonunion sector
• C)the union wage rises above the value of marginal product while the nonunion wage falls below it
• D)job losers in the union sector are unqualified to work in the nonunion sector,so society loses their potential output

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Definitions:

Reverse Causality

A situation in research or analysis where the direction of cause-and-effect is opposite to what is commonly presumed or is being investigated.

A Priori Causal Theory

Knowledge or reasoning based on theoretical deduction rather than empirical evidence, used to speculate about causes.

Dependent Variable

The variable in an experiment that is being tested and measured, often seen as the outcome or effect in a study.

Independent Variable

In experimental research, the variable that is manipulated by the researcher to examine its effect on the dependent variable.