Consider a Wage- Setting Union in an Otherwise Competitive Labour

question 56

Multiple Choice

Consider a wage- setting union in an otherwise competitive labour market. If the union sets a wage above the competitive level, the effect will be

• A) to create a group of workers who would like to obtain jobs in the industry but cannot do so.
• B) to cause the labour supply curve to shift to the right.
• C) to increase the amount of employment in the industry.
• D) a level of employment which is the same as that at the competitive equilibrium wage.
• E) to raise wages for all workers who wish to work in the industry.

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Definitions:

Bond Cash Flows

The series of cash payments to the bondholder throughout the life of the bond, typically consisting of periodic interest payments and the return of principal at maturity.

Syndication

The process of selling shares or interests in a venture to multiple individuals or entities to raise capital.

Underwriting

The process by which lenders and insurers evaluate the risks involved in insuring or lending to individuals or businesses and establish the terms of coverage or loans.

Capital Gains Yield

The price appreciation component of the total return on an investment, represented as a percentage of the initial investment cost.