If an Industrial Union Would Strike If It Does Not

question 20

Multiple Choice

If an industrial union would strike if it does not receive a particular wage rate, then the supply curve of labor in this market

• A)is horizontal at that particular wage rate until it intersects the original supply of labor curve
• B)is vertical at that particular wage rate until it intersects the original supply of labor curve
• C)shifts to the left
• D)disappears
• E)slopes downward

---

Definitions:

Economic Profits

The margin by which a firm's total sales exceed its complete set of expenses, both overt and covert.

Labor

Human effort, either physical or mental, used in the production of goods and services.

Capital

Financial assets or the financial value of assets, such as cash and buildings, used by a business to produce goods or services.

Least-Cost Combination

An economic principle where firms aim to achieve the lowest possible cost of production by efficiently combining resources.