If the Workers of a Firm Successfully Negotiate an Increase

question 131

Multiple Choice

If the workers of a firm successfully negotiate an increase in wages,which of the following is most likely to happen?

• A) The demand curve for the product the firm produces shifts rightward.
• B) The demand curve for the product the firm produces shifts leftward.
• C) The supply curve of the product the firm produces shifts rightward.
• D) The supply curve of the product the firm produces shifts leftward.

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Definitions:

Surety

is a person or entity that takes responsibility for another's performance, such as fulfilling the terms of a contract or repaying a loan.

Default

Failure to fulfill a legal obligation or agreement, such as not making a payment on a loan by the due date.

Obligation

A duty or commitment to fulfill a contractual, legal, or moral requirement.

Rescission

The legal action of cancelling, terminating, or annulling a contract, restoring the parties to their original positions prior to the agreement.