If One Sector of the Economy Becomes Unionized and There

question 31

Multiple Choice

If one sector of the economy becomes unionized and there is a spillover effect then

• A) wages will increase in both sectors.
• B) wages will increase in the unionized sector, but may either increase or decrease in the non-union sector.
• C) wages will stay unchanged in both sectors.
• D) wages will increase in the unionized sector, but decrease in the non-unionized sector.

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Definitions:

Stock Split

A corporate action in which a company divides its existing shares into multiple shares to boost the liquidity of the shares, although the overall value of the shareholder's equity remains the same.

Stock Price

The cost of purchasing a share of a company in the stock market; it fluctuates based on supply and demand.

Dividend Income

Earnings distributed to shareholders, usually derived from the company's profits, for holding the company's stock.