If a Union Is Able to Bargain for a Wage

question 262

Multiple Choice

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

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

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Definitions:

Market-to-Book Value

A ratio used to compare a company's current market price to its book value, indicating how highly the market values the company relative to its actual assets.

Financial Statements

A set of formal records that outline an entity's financial activities and condition, including the balance sheet, income statement, and cash flow statement.

Stock Market

A collection of markets and exchanges where the buying, selling, and issuance of shares of publicly-held companies occur.

Market-to-Book Value

A ratio used to compare a company's market value to its book value, indicating how much investors are willing to pay above or below the net asset value.