Sometimes Unions Can Raise Wages Above What Productivity Increases Would

question 154

Multiple Choice

Sometimes unions can raise wages above what productivity increases would permit. When this happens, we can be sure that

• A) the employment of union workers is increasing.
• B) some union workers end up losing their jobs.
• C) there is a redistribution of income from union workers to nonunion workers.
• D) featherbedding will occur.

Understand the philosophical perspectives on economic fairness and the role of government in redistributing resources.

Acknowledge the impact of medical science progress on health care costs.

Understand the concept and rationale behind means-tested programs and their specific examples.

Comprehend the aims and consequences of the welfare state, including the alleviation of income inequality and economic insecurity.

---

Definitions:

Alpha

A threshold value used in hypothesis testing that determines the level of significance, often set at 0.05.

Type I Error

A Type I error occurs in hypothesis testing when a true null hypothesis is incorrectly rejected, falsely indicating a significant effect or difference when there is none.

Significance Level

The probability of rejecting the null hypothesis in a statistical test when it is actually true, typically denoted as alpha.

P < .01

Indicates that the probability of the observed data occurring by chance is less than 1%, suggesting strong evidence against the null hypothesis.