A Changing Economy Practice Test

In a brief excerpt, a political economist argues that from 1980 to the present, the decline of private-sector unions reduced workers’ bargaining power, contributing to slower wage growth for many employees even as corporate profits rose. The author contrasts this with the mid-twentieth century, when collective bargaining helped link productivity gains to wage increases. Which trend best aligns with the author’s claim?

A scholar of globalization writes in 2020 that since the 1980s U.S. consumers benefited from cheaper imported goods, but many communities dependent on manufacturing faced job losses. The scholar adds that the political debate increasingly centered on trade deficits, factory closures, and whether the government should renegotiate trade rules. Which policy action from the 1990s is most closely associated with the trends described?