Suppose All Textile Workers in the United States Formed a Union.Which

question 25

Multiple Choice

Suppose all textile workers in the United States formed a union.Which of the following will make it more likely the union will ask for a larger wage increase (assuming the union cares about both higher wages and retaining jobs) ?

• A) Labor costs represent a large share of textile production costs.
• B) Textile firms will not invest in capital substituting for labor in producing textiles because textiles is a declining industry.
• C) Labor is a good substitute for capital.
• D) Textile buyers consider U.S. textiles a good substitute for non-U.S. made textiles.

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Definitions:

Consumer Contracts Law

The body of law that governs agreements between individuals and businesses selling goods and services to consumers.

Civil Code

A systematic collection of laws designed to deal comprehensively with the core areas of private law such as property, family, and contracts.

Undue Influence

An imbalanced psychological or moral pressure exerted by one person on another, undermining the latter's free will and leading to decisions that benefit the influencer.

Special Relationship

A legal doctrine indicating an obligation for one party to act with a higher degree of care toward another, often found in cases of dependence or trust.