The ACME Widget Co

question 68

Multiple Choice

The ACME Widget Co. has just received notice from the newly certified Widget Union requesting a meeting with management to bargain for a first collective agreement with its employees.

• A) The union has been uncooperative throughout the negotiation process which will force the negotiations to first agreement arbitration.
• B) If an agreement cannot be reached the parties may choose between third party intervention or strike/lockout.
• C) ACME would be bargaining in good faith if it negotiated with the union, but ultimately rejects most of the union demands.
• D) During the negotiations the union may run advertisements in the local newspaper setting out its requests in order to gain public support for its position.
• E) All of the responses are correct.

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Definitions:

Bundle

A collection of items or services grouped together as a single package.

Laspeyres Price Index

A price index calculated by taking the ratio of the total cost of purchasing a specified set of goods and services at current prices to the total cost of purchasing the same set of goods and services at base period prices, using base period quantities as weights.

Per Capita Income

The average income earned per person in a given area or country, calculated by dividing the total income by the population size.

Revealed Preferences

is an economic theory that infers consumers' preferences based on their purchasing habits, assuming that their choices reveal their preference structure.