Suppose a union successfully negotiates for its members a wage rate that is above the competitive wage rate, then
A) there will be a surplus of jobs.
B) antitrust laws become effective.
C) there will be downward pressure on the wage rate until equilibrium is established.
D) there will be an excess supply of labor.
D
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When hamburger is $3 per pound, Ms. Rush buys 6 pounds. When hamburger is $2 per pound, Ms. Rush buys 10 pounds. Describe Ms. Rush's demand between these two prices
A) elastic B) unit elastic C) inelastic D) perfectly inelastic E) perfectly elastic
The application of rational expectations to the permanent-income hypothesis implies that information contained in
A) only past income levels will determine permanent income. B) only past income levels will determine transitory income. C) only new changes in income that are unanticipated can change permanent income. D) only new changes in income that are anticipated can change permanent income.
If the cross elasticity of demand for two goods is positive, then the two goods are substitutes
Indicate whether the statement is true or false
In 1931, a politician was paid a salary of $75,000. Government statistics show a consumer price index of 15.2 for 1931 and 195 for 2005. The politician’s 1931 salary was equivalent to a 2005 salary of about
a) $962,171 b) 1,125,008 c)1,154,262 d)1,455,995