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Unions have been in decline since the 1960s because of

A. foreign competition.

B. Americans finding union jobs to be too difficult.

C. the move of businesses to more expensive areas of the nation.

D. unions shutting themselves down because they achieved most of their original goals.

When a bank evaluates a person for a loan, what does the word "capacity" refer to?

A. The willingness to repay debts

B. Property that can be pledged to protect the lender

C. The ability to make payments on time

D. The amount of the loan in question

1. Unions have been in decline since the 1960s because of

A. foreign competition.

Explanation: Unions were often conducted in the past in order to protect workers from "arbitrary decisions" of employers. Such decisions resulted to the laying off of workers and cutting of wages. On the contrary, business owners have a different goal. They wanted to make more profit by cutting the wages, so they didn't like the unions. However, unions have been in decline in the 1960s, mainly because of international/foreign competitions. This is because the "bargaining power of the unions as they represent the employees were reduced."

2. When a bank evaluates a person for a loan, what does the word "capacity" refer to?

C. The ability to make payments on time.

Explanation: A bank evaluates a person for a loan according to his "capability to pay" the loaned amount. It is not according to his willingness to pay, but to his "ability to return the money." In order to know whether a person is capable of repaying the money on time, the bank analyzes the borrower's gross income and his debt.

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