A Number of Economists Have Estimated the Impact of Unionisation

question 22

Multiple Choice

A number of economists have estimated the impact of unionisation on workers' wages.Which of the following is one conclusion reached by these studies?

• A)Union workers earn less than they would if they were not unionised.This is because of the impact of workers' strikes, during which union members do not receive wages.
• B)Holding constant the impact of other factors that affect wages, being in a union has no impact on a worker's wages.
• C)Being in a union increases a worker's wages by about 10 per cent, holding constant other factors that influence wages.
• D)The share of national income received by workers has increased significantly over time; unions have been responsible for about one-half of the increase in workers' share of national income from the end of World War II to 2000.

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Definitions:

Sales

The transactions involving the exchange of goods or services for money.

Contribution Margin Ratio

A financial metric that measures how much of a company's revenue is left over after variable costs to cover fixed costs and generate profit.

Fixed Costs

Fixed costs are business expenses that remain constant regardless of the level of production or sales, such as rent, salaries, and insurance premiums.

Unit Contribution Margin

Unit contribution margin is the difference between the selling price of a product and the variable costs associated with its production and sale.