In the southern part of the country Nirobia, the workers at a factory owned by Mambiki & Co. have gone on a strike dem
Posted: Fri Jul 01, 2022 7:56 am
In the southern part of the country Nirobia, the workersat a factory owned by Mambiki & Co. have gone on a strikedemanding higher wages. Mambiki & Co. is a firm thatproduces auxiliary defense equipment for aircraft. A nationalbusiness daily reports that following the closure of the factoryfor 6 weeks, the management has finally agreed to the wagehike. Kiah Desmond and her friend Rania Ali, both studentsof economics, are discussing the news report in class. Kiahargues that the factory's profits are likely to fall due tothe wage hike. Rania on the other hand feels that Mambiki willincrease the price of their products in order to compensate for theincrease in costs.
Which of the following, if true, willstrengthen Rania's argument?
A.
The government is the only buyer of the specialized defenseequipment produced by Mambiki & Co.
B.
Following the announcement of the wage hike, Mambiki'sshare values dropped significantly.
C.
The government is considering the introduction of a priceceiling in the market for auxiliary defense equipment.
D.
In order to reduce dependence on foreign suppliers, theNirobian government recently announced tax exemptions for thedefense industry for the next five years.
E.
Since most workers at the factory have permanentemployment contracts, there was a slight fall in productivitywith the increase in wage.
Which of the following, if true, willstrengthen Rania's argument?
A.
The government is the only buyer of the specialized defenseequipment produced by Mambiki & Co.
B.
Following the announcement of the wage hike, Mambiki'sshare values dropped significantly.
C.
The government is considering the introduction of a priceceiling in the market for auxiliary defense equipment.
D.
In order to reduce dependence on foreign suppliers, theNirobian government recently announced tax exemptions for thedefense industry for the next five years.
E.
Since most workers at the factory have permanentemployment contracts, there was a slight fall in productivitywith the increase in wage.