If an industrial union is able to negotiate a wage above the market-clearing wage, employment in the industry will
a. increase
b. decrease
c. increase, if the union can restrict the supply of labor
d. increase, if the union can increase the supply of labor
e. decrease due to the strike-breaking activity of the firm
B
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If the MPP of an additional unit of labor is 3 units per hour, product price is constant at $8 per unit, and the wage rate is $26 per hour, then
A. Product price must be reduced if profits are to be made. B. The employer should lower wages and accept less employment of labor. C. The additional unit of labor should be employed. D. The additional unit of labor should not be employed because it costs more than it is worth.
An increase in the price level in the economy leads to:
A. a leftward shift in the demand for money curve. B. a rightward shift in the demand for money curve. C. a leftward movement along the demand for money curve. D. a rightward movement along the demand for money curve.