Negotiations between an employer and a group of employees, usually represented by a labor union, to determine the terms of employment are called what?

• A. Collective bargaining
• B. Right-to-work law
• C. Wage gap
• D. Equilibrium wage

Answer: (A)

Collective bargaining is the process by which employees, usually represented by a labor union, negotiate with their employer to determine terms of employment, such as pay, benefits, hours, and working conditions. This is the best answer because it directly describes negotiations conducted by a group of workers through representation to set employment terms. Right-to-work laws regulate whether union membership can be required as a condition of employment, not the negotiation itself. The wage gap refers to earnings differences between groups, and the equilibrium wage is the market-clearing wage where supply and demand for labor meet, not the negotiated contract between workers and the employer. A collective bargaining agreement is the formal contract that results from these negotiations and governs terms for a set period.