One example of a situation in which employers can sometimes organize to pay lower wages is when:
A)efficiency wages are used to drive down morale and break up a labor union.
B)health maintenance organizations organize to get groups of doctors to work together at lower wages than they would earn on their own.
C)labor unions are not allowed to engage in collective bargaining.
D)corporations force the minimum wage down.

Question

Quizplus · Accepted Answer

Health maintenance organizations (HMOs) can negotiate with groups of doctors to work together at lower wages than if they were working as independent practitioners. This is because the HMO provides a steady stream of patients and reduces administrative costs for the doctors. However, this is not always seen as a negative situation, as it can also result in lower healthcare costs for consumers. Option A is not a situation where employers organize to pay lower wages, but rather an example of how they may use different strategies to undermine a union. Option C is a scenario where unions are not able to bargain collectively, but it does not involve direct action by employers to pay lower wages, and in fact, a lack of collective bargaining can result in lower wages for employees. Option D is not a common occurrence, as the minimum wage is set by the government, not corporations.

One Example of a Situation in Which Employers Can Sometimes