Unions Usually Have Which of the Following Effects

question 1

Multiple Choice

Unions usually have which of the following effects?

• A) They increase the profits of unionized firms by motivating workers to work harder.
• B) They increase the growth rate of employment in unionized firms as more workers are attracted to unionized jobs.
• C) They increase the fraction of total compensation paid in the form of employee benefits.
• D) They decrease the total compensation of unionized workers.

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Definitions:

Fixed Manufacturing

Costs that do not vary with the level of production or sales, associated with the operation of a production facility.

Break-Even Level of Sales

The sales amount at which a company's total revenues equal its total expenses, resulting in no net profit or loss.

Variable Production Costs

Costs that fluctuate with the level of production output, including direct materials, direct labor, and variable manufacturing overhead.

Monthly Fixed Cost

Expenses that do not change regardless of the level of production or sales, such as rent or salaries, calculated on a monthly basis.