If a Single Union Supplies All the Labor in a Competitive

question 6

Multiple Choice

If a single union supplies all the labor in a competitive labor market, the union probably will:

• A) increase labor supply to raise employment.
• B) restrict labor supply to raise wages.
• C) increase union membership to increase wages.
• D) behave as a monopsonist.

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Definitions:

Non-Business Organization

An entity that operates for purposes other than making a profit, such as charities, educational institutions, and government agencies.

Restrictive Funds

Funds that are designated for a specific purpose by donor requirements or legal obligations, restricting general use by the recipient.

Collective Goods

Goods or services that provide benefits to all members of a community or society, typically provided by the government and not easily restricted to individual users.

Tangible Capital Assets

Physical assets owned by a firm that are used in its operations and likely to provide future economic benefits, including buildings, machinery, and equipment.