A Wage Floor in a Two- Sector Model Does All

question 19

Multiple Choice

A wage floor in a two- sector model does all of the following except:

• A)reallocate workers to the low wage sector.
• B)allocate workers to their most productive jobs.
• C)reduce wages for unprotected workers.
• D)cause some workers to be underemployed.

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Definitions:

Agency Shop Agreement

An arrangement whereby employees must pay union dues but aren’t required to join the union.

Nonunion Workers

Employees who are not members of a labor union and typically do not have the collective bargaining support that unionized workers receive.

Unionization Rate

The proportion of workers who are members of a union within a particular industry or workforce.

Retail Trade

The selling of goods and services directly to consumers, including various formats such as brick-and-mortar stores and online sales.