If a Union Successfully Restricts the Supply of Labor to the Firm

question 246

Multiple Choice

If a union successfully restricts the supply of labor to the firm but the union has no effect on the demand for labor, then the

• A) wage increases and there is no change in employment.
• B) wage increases and employment increases.
• C) wage increases and employment decreases.
• D) wage increases and there is an unambiguous effect on employment.

---

Definitions:

England

A country that is part of the United Kingdom, known for its rich history, cultural impact, and contributions to the global political and economic systems.

Minimum Wage Laws

Laws set by legislation that determine the lowest hourly rate that workers can be paid.

Lower Skills

Lower Skills refer to a relatively low level of expertise or competency in performing tasks, usually requiring less education or training.

Compensating Differentials

Wage differentials that arise to compensate workers for the desirability or undesirable aspects of their jobs, such as risk or location.