A rise in the minimum wage increases the demand for union labor because this policy change
A) lowers the wage rate paid to union labor.
B) raises the productivity of union labor.
C) lowers the cost of a substitute for union labor.
D) raises the cost of a substitute for union labor.
D
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According to the table shown, what is the firm's marginal cost from producing the 2nd unit?
This table shows the total costs for various levels of output for a firm operating in a perfectly competitive market.
A. $10.00
B. $7.50
C. $27.50
D. $20.00
Despite the elimination of the federal budget deficit in the late 1990s, the trade deficit increased due to
A. increased household saving. B. decreased household saving. C. a depreciation of the dollar. D. an increase in inflation rates.
Which of the following best explains why the line for disposable income is vertical?
a. An increase in real wealth raises consumption spending.
b. Disposable income is being held constant to examine autonomous factors.
c. As household debt increases, consumption spending falls.
d. Not all income is used to buy goods and services; some is saved or taxed away.
A monopsony has an upward sloping supply curve because
A. when more units of labor are hired, only the new workers receive the higher wage. B. diminishing marginal product to scale does not exist in a monopsony. C. each additional unit of labor costs less. D. when more units of labor are hired, all laborers must receive the higher wage.