Consider a Labor Market with Two Sectors-A Union Sector and a Non-Union

question 15

Multiple Choice

Consider a labor market with two sectors-a union sector and a non-union sector-with perfectly inelastic labor supply. The presence of the union sector causes all of the following results except:

• A) the union wage is greater than the competitive wage when there is no union sector.
• B) the nonunion wage is less than the competitive wage when there is no union sector.
• C) fewer workers are hired in the union sector than those same firms would hire if there was no union sector.
• D) more workers are hired in the nonunion sector than those same firms would hire if there was no union sector.
• E) total surplus added between the union sector and the nonunion sector is the same as total surplus when there is no union sector.

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Definitions:

Inferiority Complex

A psychological condition in which a person feels a lack of self-esteem and doubts about their abilities, often unconsciously, leading to overcompensation or withdrawal.

Adler

Alfred Adler, an Austrian medical doctor and psychotherapist, known for his theory of individual psychology which emphasizes the importance of the feeling of inferiority and the striving for superiority.

Feelings of Inadequacy

Emotions that reflect a lack of confidence in one's abilities or worth.

Humanistic

A psychological perspective that emphasizes the study of the whole person, looking at human behavior not only through the eyes of the observer but also through the eyes of the person doing the behaving.