If a Union Negotiates and Obtains a Wage Rate Above

question 271

Multiple Choice

If a union negotiates and obtains a wage rate above the competitive wage rate,

• A) it must find a way to make workers more productive.
• B) employment in the union sector will increase relative to employment in the nonunion sector.
• C) it must find a way to ration jobs among the excessive number of workers who wish to work in the union sector.
• D) unemployment will increase in the nonunion sector relative to the union sector.

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Definitions:

Production Function

An equation, table, or graph that shows the maximum output of goods and services that can be produced with varying inputs under certain technological constraints.

Labor

The human effort, both physical and mental, used in the production process.

Average Cost

The cost per unit, determined by dividing the total production costs by the quantity of units produced.

Copper

A metal element with high thermal and electrical conductivity, often used in electrical wiring and construction materials.