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:

GPS

Global Positioning System, a satellite-based navigation system that provides location and time information in all weather conditions.

Satellite Global Positioning System

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The accounting process of allocating the cost of a tangible asset over its useful life, representing wear and tear, or obsoleteness.

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A bond secured by a mortgage on a property, where the bondholders have a claim on the property in case of default.