Briefly describe how labor unions can affect wages in non-unionized industries
If labor unions raise wages above the equilibrium level, some workers who want union jobs will be unemployed because the quantity supplied of unionized jobs will exceed the quantity demanded. If those workers seek jobs in non-unionized industries, the supply of labor in those industries will increase, which lowers wages in non-unionized industries, all else equal.
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In recent years, the world demand curve for copper shifted rightward due to continued economic growth in China and other emerging economies. Also, the costs of extracting the copper increased due to higher energy prices. As a result, we observed:
A) higher equilibrium copper prices and unambiguously lower quantities. B) higher equilibrium copper prices and unambiguously higher quantities. C) higher equilibrium copper prices and either higher or lower quantities. D) lower equilibrium copper prices and either higher or lower quantities.
From 1970 to the mid-1990s, the relative price of crude petroleum
A) steadily increased. B) steadily decreased. C) increased dramatically, then decreased dramatically. D) decreased dramatically, then increased dramatically. E) remained more or less the same.