Economics 2281 · O Level · Trade unions

Trade unions — practice question

What factors would give a trade union a strong bargaining position when negotiating higher wages for its members at a specific firm?

  • AThe demand for the product produced by the workers has an inelastic demand.
  • BThe economy is experiencing high unemployment.
  • CThe proportion of the firm’s workers in the union is low.
  • DWage costs are a high proportion of total costs for firms in the industry.

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