If Workers Can Do the Work in Both the Unionized

question 119

Multiple Choice

If workers can do the work in both the unionized sector and the nonunionized sector, then an increase in the wage rate paid in the unionized sector (relative to the wage rate paid in the nonunionized sector) , which is brought about by a permanent leftward shift in the labor supply curve, will lead to

• A)an increase in the supply of labor in the nonunionized sector and lower wages in that sector.
• B)an increase in the supply of labor in the unionized sector and lower wages in that sector.
• C)no change in the supply of labor in either of the sectors mentioned.
• D)an increase in the supply of labor in the unionized sector and even higher wages in that sector.
• E)There is not enough information to answer the question.

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Definitions:

Felony

A serious crime, such as murder, rape, or robbery, that is punishable by imprisonment for more than one year or by death.

Imprisonment

The state of being confined in prison as a form of punishment for committing a crime.

Embezzlement

The act of wrongfully appropriating funds that have been trusted to one's care but are owned by someone else.

Bank Teller

A bank employee who handles withdrawals, deposits, and other transactions directly with the customers.