A Change in the Distribution of Income That Leaves Total

question 21

Multiple Choice

A change in the distribution of income that leaves total income constant will not shift the market demand curve for a product providing

• A)everyone has an income elasticity of demand of zero for the product.
• B)everyone has the same income elasticity of demand for the product.
• C)individuals have differing income elasticities for the product,but the average income elasticity for income gainers is equal to the average income elasticity for income losers.
• D)any of these conditions occur.

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Definitions:

Strikebreakers

Individuals who work or are employed in place of union workers who are on strike, thus undermining the strike action.

Lockout

A negotiating tactic in which a firm forbids its unionized workers to return to work until a new collective bargaining agreement is signed; a means of imposing costs (lost wages) on union workers.

Union Representatives

Individuals elected or appointed to represent the interests and concerns of members within a labor union.

Labor Dispute

A disagreement between employees and employers, often involving issues like wages, working conditions, and union representation.