A Union That Pursued a Policy of Restricting Entry Over

question 28

Multiple Choice

A union that pursued a policy of restricting entry over time into the union would

• A) see real wages hold constant over time at whatever premium they could get initially.
• B) also have to negotiate to be sure that all the members were able to find jobs.
• C) generate rising real wages for its membership over time as long as demand for union workers increased over time.
• D) fail to obtain benefits for their workers in excess of what the workers would get under open markets.

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Definitions:

Straight-Line Depreciation

A method of calculating the depreciation of an asset evenly over its useful life, assigning a fixed expense amount to every accounting period.

Fixed Asset

A durable, physical asset that a company possesses and employs in its business activities to produce revenue.

Salvage Value

Salvage value is the estimated residual value of an asset at the end of its useful life, indicating how much the asset can be sold for after it is no longer useful for its intended purpose.

Estimated Life

The expected period over which an asset will be useful in the operations of a business.