If Collective Bargaining Results in a Surplus of Labor in Some

question 191

Multiple Choice

If collective bargaining results in a surplus of labor in some industries,the resulting _____

• A)increase in the demand for labor in the nonunion sector drives nonunion wages up.
• B)decrease in the demand for labor in the nonunion sector drives nonunion wages down.
• C)increase in the supply of labor in the nonunion sector drives nonunion wages down.
• D)increase in the supply of labor in the nonunion sector drives nonunion wages up.
• E)decrease in the supply of labor in the nonunion sector drives nonunion wages up.

---

Definitions:

Leveraged Buyout

A transaction where a company is acquired primarily using borrowed funds.

Publicly Traded Company

A company that is registered with the SEC and whose securities therefore may be sold to the general public.

Privately Held

A business ownership structure where the company's shares are not available for public trading on stock exchanges.

Greenmail

A strategy where a company buys back its shares from a potential acquirer at a premium to avoid a takeover bid.