When unions successfully raise wage rates,
a. the employer must cut benefits
b. fewer workers may be employed
c. there is decreasing pressure for workers to join the market
d. a strike occurs
e. the monopsony keeps the same return to monopsony power
B
You might also like to view...
Too much of society's scarce resources are used to produce goods in monopoly markets
a. True b. False Indicate whether the statement is true or false
If the monetary authorities follow policies that keep the annual rate of inflation steady and low (for example, 2 percent), which of the following is most likely to occur?
a. a high rate of unemployment because people will anticipate a higher rate of inflation b. considerable fluctuations in real GDP because the monetary authorities are not constantly adjusting monetary policy in light of current business conditions c. higher real interest rates because decision makers will fail to anticipate the 2 percent rate of inflation d. an unemployment rate that is at or near the natural rate of unemployment because the actual rate of inflation will not be much different than what people expect