Question

If a for-profit firm that has paid out record bonuses to its executive every year while underfunding contributions to unionized workers' pensions required under the collective agreement then attempts to reduce workers' pension entitlements, the union members will most likely

	enter into collective bargaining.
	be unable to defend against this action.
	take defensive strike action.
	receive higher wages instead.

Which of the following is true?

	A nation can have a comparative advantage in the production of a good only if it also has an absolute advantage.
	A nation can have a comparative advantage in the production of every good, but not an absolute advantage.
	A nation cannot have an absolute advantage in the production of every good.
	A nation cannot have a comparative advantage in the production of every good.

Answer 1

1. Option C.

• Defensive strike actions are those actions undertaken by worker's of common interest as an act of defence or refusal to work.
• These actions are usually undertaken by the members of an organization who are also the members of a union.
• If a firm paid out record bonuses to executives while underfunding contributions to unionized workers' pensions, then those union members are most likely to take defensive strike action for fairness.

2. Option D.

• A nation cannot have a comparative advantage in the production of every good.
• This is because a country is said to have a comparative advantage only if it is able to produce goods and services at a lower opportunity cost when compared to other countries.