The Crowding Effect

question 4

Multiple Choice

The crowding effect:

• A)increases wages in the non-union sector
• B)decreases wages in the non-union sector
• C)increases productivity in the non-union sector
• D)decreases productivity in the non-union sector
• E)increases investment in the union sector

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Definitions:

Mark-up

The amount added to the cost price of goods to cover overhead and profit, resulting in the selling price.

Sweater

A knitted garment typically with long sleeves, worn over the upper body.

Overhead Expenses

General business expenses not directly attributable to a specific product or service, such as rent, utilities, and administration costs.

Break-even Price

The price at which total costs and total revenue are equal, resulting in no net gain or loss.