The Motor Vehicle Builders' Union Bargained for Higher Wages and More

question 100

Multiple Choice

The Motor Vehicle Builders' Union bargained for higher wages and more benefits for its members. As a result of the higher wages and increased benefits, i. the quantity of new cars supplied decreases.
Ii) the supply of new cars decreases.
Iii) the supply of new cars increases.

• A) only i
• B) only ii
• C) only iii
• D) both i and ii
• E) Neither i, ii nor iii is correct.

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Definitions:

Real GDP

Gross Domestic Product adjusted for inflation, measuring the value of goods and services produced by an economy in real terms.

Net Exports

The value of a country's total exports minus its total imports, representing the net effect of foreign trade on an economy's GDP.

National Income

National Income is the total value of all goods and services produced by a country over a specific period, reflecting the economic strength and standard of living in the country.

Real GDP

Gross Domestic Product adjusted for inflation, measuring the value of goods and services produced by a country.