The Workers in Market 1 and Market 2 Are Equally

question 105

Multiple Choice

The workers in Market 1 and Market 2 are equally qualified;they can easily move between industries.
-Refer to the diagrams above.Suppose that a labour union forms in market 1 and succeeds in raising the wage to W1.The effect on workers in market 2 is to make

• A) all workers better off.
• B) all workers worse off.
• C) workers from 0 to L2 better off.
• D) workers from 0 to L2 worse off and workers from L2 to L4 better off.
• E) workers from L2 to L4 better off.

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Definitions:

Deer

A type of wild or farmed animal with antlers that is often hunted for sport, meat, or for its skin.

Plastic

A synthetic material made from a wide range of organic polymers such as polyethylene, PVC, nylon, etc., that can be molded into shape while soft and then set into a rigid or slightly elastic form.

Wood

A hard, fibrous material derived from trees and used in construction, manufacturing, and as fuel.

Three-Martini Lunches

Informal term for extended business lunches that involve alcohol and are characterized by leisurely pace and socializing, often associated with business discussions.