O Levels Economics (2281)•2281/11/M/J/23

Explanation
Legislation Limiting Strikes Weakens Union Power
Steps:
- Identify bargaining strength as a union's ability to negotiate higher wages through pressure tactics like strikes.
- Evaluate each factor's impact on union leverage against employers.
- Eliminate options that enhance union power via economic conditions, membership, or labor scarcity.
- Select the factor that restricts union actions, reducing bargaining effectiveness.
Why C is correct:
- Legislation limiting strike action directly curbs unions' primary tool for coercing employers, per labor economics principles, weakening their wage negotiation leverage.
Why the others are wrong:
- A: A rapidly growing economy boosts employer profits and demand for labor, increasing unions' ability to demand higher wages.
- B: High union membership strengthens collective action and solidarity, amplifying bargaining power through unified worker support.
- D: Short supply of workers gives unions more leverage, as employers compete for scarce labor and concede to wage demands.
Final answer: C
Topic: Trade unions
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