Suppose a Union Successfully Negotiates a Wage Rate for Its

question 25

Multiple Choice

Suppose a union successfully negotiates a wage rate for its members that is above the competitive wage rate, then

• A) employment in the union sector will increase.
• B) the union must find a way to make union workers more productive.
• C) the union must also negotiate a fringe-benefit package that the membership will like.
• D) the union must find a way to ration jobs among the excessive number of workers who wish to work at the negotiated wage.

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Definitions:

Share Options

Financial derivatives that give the holder the right, but not the obligation, to buy or sell shares of a stock at a specified price within a specified time.

Promotion

Marketing activities aimed at increasing awareness, interest, and sales of a product or service.

Sales Margin

The difference between the sales revenue of a product and the cost of goods sold, expressed as a percentage of the sales revenue, indicating profitability.

Capital Turnover

A metric that evaluates how effectively a business leverages its capital to produce income.