Refer to the below graph which shows the supply and demand for unionized manufacturing workers. The initial equilibrium point is point 1. The wages paid in comparable nonunion occupations increase significantly, while at the same time the price of manufactured goods increases. Which point would represent the new equilibrium?
A. 2
B. 3
C. 4
D. 5
B. 3
You might also like to view...
When there is a negative externality, the marginal private cost of production ________ the marginal social cost of production
A) eliminates B) is less than C) is equal to D) is greater than
Which of the following is an example of U.S. foreign direct investment and by itself increases U.S. net capital outflow?
a. A U.S. electronics company opens and operates a new factory in India. b. A Swiss bank buys bonds issued by a U.S. company. c. A U.S. pension fund buys bonds issued by the Japanese government. d. A French restaurant opens and operates a restaurant in New York.
Transfer payments represent income that is not earned but received by individuals.
Answer the following statement true (T) or false (F)
Which of the following refers to a two-way trade in which a country both exports and imports the same or very similar products?
A. Inter-industry trade B. Intra-industry trade C. Net trade D. Internal trade