If a Union Succeeds in Shifting the Labour Supply Curve

question 75

Multiple Choice

If a union succeeds in shifting the labour supply curve to the left, it can achieve wages above the

• A) competitive level and all workers will gain.
• B) equilibrium level as well as increasing employment.
• C) competitive level but will reduce the level of employment .
• D) equilibrium level without affecting employment.
• E) competitive level without a pool of unemployed workers seeking to work at the higher wage.

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Definitions:

Exercise Price

The price at which the holder of an option can buy or sell the underlying asset.

Time Value

The portion of an option's premium that is attributable to the amount of time remaining until the expiration of the option contract.

At-The-Money

A situation in options trading where the option's strike price is equal to the market price of the underlying asset.

Call Option

A financial contract that gives the buyer the right, but not the obligation, to buy an asset at a specified price within a specific time period.