If a union negotiates and obtains a wage rate above the competitive wage rate,
A) it must find a way to make workers more productive.
B) employment in the union sector will increase relative to employment in the nonunion sector.
C) it must find a way to ration jobs among the excessive number of workers who wish to work in the union sector.
D) unemployment will increase in the nonunion sector relative to the union sector.
Answer: C
You might also like to view...
A time-inconsistent monetary policy is one that:
a. is set by congressional decree. b. is based on monetary targets established by law. c. changes over time as economic conditions change. d. follows a zero percent inflation rate. e. does not adapt to changing economic conditions.
High income countries with larger governments as a share of GDP have generally
a. grown less rapidly than their counterparts with smaller governments. b. experienced less deadweight losses resulting from taxes and/or government borrowing. c. seen the government decrease in size as real GDP rises. d. been able to be more economically efficient.
For the convenience of analyzing the part of the deficit that is sensitive to fiscal policy, the actual deficit is divided into which of the following components?
A. Frictional and seasonal deficits. B. Automatic stabilizers and autonomous consumption. C. Structural and cyclical deficits. D. C, I, G, X, and M.
If marginal cost exceeds marginal revenue, a profit-maximizing monopolist will:
A. restrict output to increase the price even higher. B. raise price and expand output to increase profit. C. lower price and expand output to increase profit. D. attempt to maintain this position because it is consistent with profit maximization.