When unions exist in markets
A) firms must have market power in their output markets.
B) there no longer is a perfectly competitive labor supply.
C) individual workers no longer make labor-leisure trade-off decisions.
D) employers have market power in labor markets.
Answer: B
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Renee plans to graduate and enter the job market in the spring. Economists are forecasting a recession during the spring. As a result, she
a. is happy because unemployment rates are low during a recession b. is happy because salaries are usually higher during a recession c. does not care because the availability of jobs is not affected by whether there is a recession d. is unhappy because it is generally difficult to find a job during a recession e. favors increasing taxes to help head off the recession
Many LDCs remain poor even though their income grows because
a. they tend to spend it on human capital instead of on physical capital, such as machinery, factories, and modern technology b. they prefer services to goods c. their income was too small to begin with d. the growth rate is smaller than the growth rate of industrialized nations e. it does not grow faster than population