If a Union Is Able to Decrease the Supply of Workers

question 333

Multiple Choice

If a union is able to decrease the supply of workers in a competitive labor market but the union cannot affect the demand for its members' labor, then

• A) wages and the quantity of labor hired will both increase.
• B) wages will increase but the quantity of labor hired will decrease.
• C) wages will decrease but the quantity of labor hired will increase.
• D) wages and the quantity of labor hired will both decrease.

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Definitions:

Direct Method

A way of preparing a cash flow statement where actual cash flow information from the company’s operations is used, directly showing cash receipts and cash disbursements.

Machine Hours

A measure of production output based on the amount of time machinery is operated.

Number Of Employees

The total count of individuals employed by a company or organization, either full-time or part-time.

Step-down Method

A method used in cost accounting to allocate service department costs to producing departments, considering inter-departmental services.