The presence of union wages leads to
A) a fall in the real wage rate as more people are hired.
B) less job search as more workers are hired.
C) job rationing because the real wage exceeds the equilibrium real wage.
D) a fall in the real wage rate as fewer people are hired.
E) lower unemployment because workers do not want to lose the high union wage they are being paid.
C
You might also like to view...
Refer to Table 18.1. After trade begins, ________ will specialize in the production of hats and ________ will specialize in the production of gloves
A) Panama; Russia B) Russia; Panama C) Russia; Russia D) Panama; Panama
Refer to Figures d and e. Bundle A is preferred to bundle B in Figure e and not in Figure d because:
A. the MRS between water in a rainy season and during a drought is higher in e than in d.
B. as the probability of a drought increases, consumers are no longer indifferent between the two bundles.
C. as the probability of a drought decreases, water in a rainy season becomes less valuable.
D. consumers are indifferent between bundles A and B as the probability of a drought increases.
When asked to reveal their true preferences people
A. always tell the truth. B. never tell the truth. C. sometimes tell the truth. D. generally don't know what preferences are.
Do any of the fundamental factors depend on the rate of inflation?
A. Yes, but only in the long run. B. Yes, both in the short and long run. C. No, not even in the short run. D. No, at least not in the long run.