The Primary Mechanism by Which Industrial Unions Typically Increase Wage

question 16

Multiple Choice

The primary mechanism by which industrial unions typically increase wage rates is:

• A) increasing the demand for labour of the firm.
• B) imposing a wage rate above the equilibrium rate on the firm.
• C) increasing the supply of labour of the firm.
• D) decreasing the demand for labour of the firm.

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Definitions:

Natural Experiments

An empirical study in which the conditions of the study are determined by nature or by other factors outside the control of the investigators, but the process allows for the interpretation of causal relationships.

Wages, Rent, And Profit

These are components of income distribution in economics, with wages paid to labor, rent earned from land, and profit derived from capital investment.

Scientific Thinking

A method of inquiry that involves observing phenomena, asking questions, forming hypotheses, conducting experiments, and drawing conclusions based on evidence.

Assumptions

Conditions or principles that are taken as true or as certain to happen, without proof, for the purpose of argument or investigation.