If There Were an Increase in the Share of the Labour

question 29

Multiple Choice

If there were an increase in the share of the labour force that is unionized,it would likely lead to ________ wage flexibility,which would ________ the NAIRU.

• A)more; increase
• B)more; decrease
• C)less; increase
• D)less; decrease
• E)less; not change

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Definitions:

Circular Flow

An economic model that depicts how money and goods flow through the economy in a continuous loop between households and firms.

Profits

The financial gain obtained when the revenues generated from business activities exceed the expenses and costs incurred in operating the business.

Producing Units

Entities, either facilities or machinery, involved in the production process to manufacture goods or services.

Economy

The system of production, distribution, and consumption of goods and services in a particular geographic region or country.