Evidence in Support of the Hypothesis That Unions Increase the Productivity

question 36

Multiple Choice

Evidence in support of the hypothesis that unions increase the productivity of union workers is

• A) the fact that union wages are greater than nonunion wages.
• B) there is an excess supply of labor at the union wage rate.
• C) that unionized firms face lower turnover rates than nonunion firms do.
• D) that most contracts are settled without a strike.

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Definitions:

Total Revenues

The total amount of income generated by the sale of goods or services related to a company's primary operations.

Marginal Revenue Product

The additional revenue generated from using one more unit of a factor of production, holding all other factors constant.

Law of Diminishing Returns

This economic law states that after a certain point, successive increments of a single factor of production yield progressively smaller increases in output.

Competitive Market

A market environment where numerous producers and consumers interact, leading to price competition and variety in products.