Exhibit 27-9 ​

question 96

Multiple Choice

Exhibit 27-9
​

-Refer to Exhibit 27-9. Let D_A and D_B represent demand for labor curves facing unions A and B, respectively. As a result of their efforts, both unions succeed in increasing the wage rate from W₁ to W₂. In terms of the wage-employment trade-off, the wage increase

• A)had a larger impact on employment for union A than for union B.
• B)had a larger impact on employment for union B than for union A.
• C)had the same impact on employment in both unions.
• D)cannot be determined without further information.

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Definitions:

Agent

An individual or entity authorized to act on behalf of another (the principal) in transactions or other matters.

Duty Of Obedience

The requirement for directors and officers of an organization to act in accordance with its goals and directives.

Clearly Stated

Expressed in a manner that leaves no doubt about the meaning or intentions.

Good Faith

The principle of honesty and sincerity in dealings, especially in fulfilling contractual obligations.