In 2011,when Automakers Began to Create New Jobs,new Union Hires

question 75

Multiple Choice

In 2011,when automakers began to create new jobs,new union hires were offered about half the pay ($14 an hour) that autoworkers were getting before ($28) .This is an example of

• A)union security clauses.
• B)two-tier wage contracts.
• C)cost-of-living adjustments.
• D)incentives.
• E)givebacks.

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Definitions:

Equilibrium Price

The price at which the quantity of a good demanded equals the quantity supplied, leading to no shortage or surplus.

MR

Short for Marginal Revenue, it is the increase in revenue from selling one additional unit of a good or service.

Negative Profits

A financial loss or situation where expenses exceed revenues in a business.

Profit-Maximizing

A company's goal to achieve the highest profit possible given its products, market conditions, and operational costs.