If Featherbedding Raises the Price of Output Produced by the Union

question 65

Multiple Choice

If featherbedding raises the price of output produced by the union workers, it

• A)increases employment at the firm and in the industry
• B)decreases employment at the firm and in the industry
• C)increases employment at the firm but may decrease it in the industry
• D)decreases employment at the firm and increases it in the industry
• E)increases employment at the firm but reduces the number of firms so that there is no net effect on industry employment

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Definitions:

Sensory Adaptation

The process by which sensory receptors change their sensitivity to a stimulus over time, often resulting in a decrease in sensitivity to a constant stimulus.

Sensory Deprivation

A condition in which an individual receives significantly reduced sensory input, which can lead to various cognitive and psychological effects.

Saturation

In color theory, saturation refers to the intensity of a color, how pure it is in comparison to gray. In a broader sense, it can also refer to the point at which a thing is unable to absorb or dissolve any more of something.

Colorfulness

The degree to which a visual stimulus is perceived as vivid or saturated, as opposed to dull or washed out.