Consider Two Labour Markets in Which Jobs Are Equally Attractive

question 40

Multiple Choice

Consider two labour markets in which jobs are equally attractive in all respects other than the wage rate. All workers are equally able to do either job. Initially, both labour markets are perfectly competitive. If a union organizes workers in one of the markets, then the wage rates will tend to

• A) Rise in both markets.
• B) Fall in both markets
• C) Rise for the union jobs, but remain unchanged for the non-union jobs.
• D) Rise for the union jobs and fall for the non-union jobs.

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Definitions:

Genetic Variation

Inherited differences among individuals.

Identical Halves

Describes an organism or structure that can be divided into two equal parts that are mirror images of each other, typical of radial symmetry.

Metabolism

The sum of all the chemical processes that occur within a cell or organism; the transformations by which energy and matter are made available for use by the organism. See anabolism and catabolism.

Chemical Reactions

Processes that involve rearrangement of the molecules or ionic structure of substances, resulting in the formation of new products.