Which of the Following Best Describes the Effects of a Major

question 101

Multiple Choice

Which of the following best describes the effects of a major labor union that maintains a union wage above the market equilibrium wage?

• A) The quantity of labor demanded exceeds the quantity of labor supplied, and the unemployment rate increases.
• B) The quantity of labor demanded exceeds the quantity of labor supplied, and the unemployment rate decreases.
• C) The quantity of labor supplied exceeds the quantity of labor demanded, and the unemployment rate increases.
• D) The quantity of labor supplied exceeds the quantity of labor demanded, and the unemployment rate decreases.

---

Definitions:

Ethical Problem

A dilemma or situation that requires a decision to be made that involves questioning the morality of the actions or choices.

Business Decision Maker

An individual or group within an organization responsible for making strategic and operational decisions.

Long-run Profit Maximization

A strategy where a firm seeks to achieve the highest possible profit over a prolonged period, considering both current and future potential changes in market conditions.

Unethically

Behaving in a manner that is contrary to accepted moral norms or professional standards.