Suppose That Computer Factory Workers and Cell Phone Factory Workers

question 284

Multiple Choice

Suppose that computer factory workers and cell phone factory workers have no unions. Now suppose that cell phone factory workers form unions. What does this do the labor supply of and wages of workers in computer factories?

• A)It increases the labor supply and wages of computer factory workers.
• B)It increases the labor supply and decreases the wages of computer factory workers.
• C)It decreases the labor supply and increases the wages of computer factory workers.
• D)It decreases the labor supply and wages of computer factory workers.

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Definitions:

Short Sale

A transaction where an investor borrows a security and sells it on the open market, planning to buy it back later at a lower price.

Maintenance Margin

The minimum amount of equity that must be maintained in a margin account after a purchase has been made, to continuing holding the position.

Secondary Markets

Markets where investors buy and sell securities or assets from other investors, rather than from issuing companies directly.

Original Issue

The first issuance of a security or financial instrument to the public or to investors.