If an industrial union is able to negotiate a wage above the market-clearing wage, the non-union wage in other industries will
a. increase
b. decrease
c. increase, if the union can restrict the supply of labor
d. increase, if the union can increase the supply of labor
e. decrease due to the strike-breaking activity of the firm
B
You might also like to view...
Use the following diagram in which S is the market supply curve and S1 is a supply curve comprising all costs of production, including external costs, to answer the question below.
Assume that the number of people affected by these external costs is large. Without government interference, this market will reach a(n)
A. optimal allocation of society's resources. B. overallocation of resources to this product. C. higher price than is consistent with an optimal allocation of resources. D. underallocation of resources to this product.
Which statement is most likely correct about quantity supplied?
a. When economists refer to quantity supplied, they are referring to a certain point on the supply curve or a certain quantity on the supply schedule. b. When economists refer to quantity supplied, they are referring to the relationship between a range of prices and the quantities supplied at those prices. c. Quantity supplied does not change with price. d. Quantity supplied will increase for one good when the quantity of the other good is increased.
When producers maximize their profits from the production of a good or service, they are:
A. assuming that all other things are equal. B. making a trade-off between economic efficiency and economic freedom. C. exhibiting purposeful behavior. D. testing a hypothesis.
Recall the Application about craft beer and the increase in the price of hops to answer the following question(s).Recall the Application. Because hops are inputs in the production of beer, an increase in the production of beer resulted in:
A. an increase in the demand for hops. B. a decrease in the demand for hops. C. an increase in the quantity demanded for hops. D. a decrease in the quantity demanded for hops.