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Question

Which of the following is not the reason of Trade Unions to demand for higher wages?

A
A higher rate of inflation
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B
An increase in business profits
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C
A fall in real wages of workers
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D
Business getting loss
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Solution

The correct option is D Business getting loss
Business getting loss is not the reason of Trade Unions to demand for higher wages. Whereas, trade unions can demand for higher wages when there is a higher rate of inflation, an increase in business profits or a fall in real wages of workers. Trade unions are established to uphold the interests of the workers.

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