If a Union Is Able to Bargain for a Wage

question 142

Multiple Choice

If a union is able to bargain for a wage that is higher than the equilibrium, this means that:

• A)all workers will earn a wage equal to their value of marginal product.
• B)some excess supply of labor or unemployment will result at this wage rate.
• C)compensating differentials will be erased in this market.
• D)diminishing returns will not exist in this market.

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Definitions:

Least Squares

A method in statistics for approximating the solution of overdetermined systems, by minimizing the differences between the observed and predicted values.

Simple Linear Regression

A statistical method used to model the relationship between a single independent variable and a dependent variable by fitting a linear equation to observed data.

Normally Distributed

A statistical distribution that is symmetrical about the mean, where most observations cluster around the central peak and the probabilities for values further away from the mean taper off equally in both directions.

Parameters

In statistics, parameters are numerical characteristics of a population, such as its mean or standard deviation.