Asked by
Ahmad Anees
on Dec 10, 2024
Verified
To the extent that unions can transfer profits from unionized employers to union workers, they will
A) reduce the incentive of unionized employers to invest in fixed capital and research.
B) increase employment in the unionized sector.
C) reduce the incentive of nonunion firms to invest and expand their output.
D) increase the productivity of labor in the long run.
Fixed Capital
Assets with long-term use in the production process, such as buildings, machinery, and equipment, which are not consumed in the production but are essential for it.
Productivity
A measure of the efficiency of production, often expressed as the ratio of inputs to the outputs generated.
- Assess the impact of unionization on productivity and investment.
Verified Answer
SR
Learning Objectives
- Assess the impact of unionization on productivity and investment.