A Union Is Formed to Restrict Labour Supply in a Previously

question 23

Multiple Choice

A union is formed to restrict labour supply in a previously perfectly competitive labour market.If the union succeeds in raising the wage rate,everything else remaining the same,

• A)employment will fall.
• B)employment will rise.
• C)employment will not change.
• D)firms will lock out the union workers.
• E)the demand β₁ union labour will increase.

---

Definitions:

Psychology

The scientific study of the mind and behaviors, encompassing a wide range of topics from cognitive processes to social interactions.

Economic Behavior

The study of how individuals, households, and organizations make choices to allocate scarce resources.

Moral Hazard

Moral hazard refers to a situation where one party is more likely to take risks because they do not have to bear the full consequences of their actions.

March Madness

An annual college basketball tournament held in the United States, featuring 68 teams competing in a single-elimination format.