Which of the Following Best Describes the Effects of Unions

question 130

Multiple Choice

Which of the following best describes the effects of unions in the United States today?

• A) The average union worker works more hours but earns a lower annual income than the average nonunion worker.
• B) The average union worker works fewer hours but earns a higher annual income than the average nonunion worker.
• C) The average union worker works more hours and earns a higher annual income than the average nonunion worker.
• D) The average union worker works fewer hours and earns a lower annual income than the average nonunion worker.

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Definitions:

Equilibrium Price

The price at which the quantity of a good or service demanded equals the quantity supplied, resulting in market balance.

Demand

The willingness and ability of consumers to purchase goods or services at a given price level.

Supply

The complete quantity of a product or service that can be bought at a particular price point.

Price Floor

A legally established minimum price for a good, or service. Normally set at a price above the equilibrium price.