Suppose a union successfully negotiates for its members a wage rate that is above the competitive wage rate, then
A. there will be an excess supply of labor.
B. there will be a surplus of jobs.
C. antitrust laws become effective.
D. there will be downward pressure on the wage rate until equilibrium is established.
Answer: A
You might also like to view...
When the domestic currency strengthens under a fixed exchange-rate system, this is called
A) a depreciation. B) an appreciation. C) a devaluation. D) a revaluation.
During the 2007-2009 recession and its aftermath, Okun's law
A) predicted the cyclical unemployment rate more accurately than it did prior to the recession. B) predicted the cyclical unemployment rate at roughly the same rate of accuracy as it did prior to the recession. C) predicted a higher cyclical unemployment rate than was actually experienced in the U.S. economy. D) predicted a lower cyclical unemployment rate than was actually experienced in the U.S. economy.