Refer the above figure. Suppose the union sets the wage rate that will maximize the total income for the members who work. The total wages will be
A) W1iL4O.
B) W2aL3O.
C) W3bL2O.
D) W3bhW1.
B
You might also like to view...
All of the following arguments are presented in favor of inflation targeting EXCEPT
A) it would draw attention to what the central bank can achieve in practice. B) it would provide an anchor for inflationary expectations. C) it would promote accountability by providing a yardstick by which policy can be measured. D) it would reduce the lags inherent in monetary policy.
Commercialization, market growth and factories emerged in rural areas
Indicate whether the statement is true or false
The natural rate of unemployment will rise for all of the following reasons EXCEPT:
A) more generous terms for unemployment compensation. B) an increase in union membership. C) an increase in labor productivity that translates into greater demand for labor. D) a surge in the number of young and inexperienced workers.
In Figure 1 above if the economy were at Y3 then we would expect there to be:
A. a decrease in production since PAE < actual output. B. an increase in production since PAE < actual output. C. an increase in production since PAE > actual output. D. no change in production since PAE = actual output.