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Economics · Oct / Nov 2018 · Paper 13 · Question 10

2281Workers

What would put a trade union in a strong bargaining position to negotiate higher wages for its members in a particular firm?

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

As printed in the paper

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Correct answer: A. The demand for the product produced by the workers has an inelastic demand.

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