If a Union Restricts the Supply of Labor but Cannot

question 192

Multiple Choice

If a union restricts the supply of labor but cannot change the demand for labor, the union ________ the wage rate and ________ the level of employment.

• A) raises; decreases
• B) raises; increases
• C) lowers; decreases
• D) lowers; increases

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Definitions:

Standard Error

A measure of the statistical accuracy of an estimate, indicating how much the sample mean is expected to vary from the true population mean.

Mean

The average of a set of numbers, calculated by dividing the sum of all values by the count of values, and used as a measure of central tendency.

Z-statistic

A type of standard score that represents the distance in standard deviations a data point is from the mean, used in significance testing.

Two-tailed Test

A statistical test that considers both directions of a possible effect, testing for the possibility of an effect in two opposite directions.