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
Economics
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The two "goods" used when economists analyze labor supply are
a. work and leisure. b. work and consumption. c. saving and consumption. d. leisure and consumption.
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