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How Do Strong Trade Unions and Legislation That Limits Redundancies

Question 34

Multiple Choice

How do strong trade unions and legislation that limits redundancies affect the economy?


A) Opportunities to use advanced technology or new capital machinery may be blocked by trade unions.
B) The level of wages paid to workers in the economy may fall below the subsistence wage.
C) Inefficient practices in the economy can be removed easily, leading to increases in productivity.
D) Economic resources can easily be allocated according to where they are valued the most.

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