When a Union Raises the Wage Above the Equilibrium Level

question 41

Multiple Choice

When a union raises the wage above the equilibrium level, ceteris paribus:

• A)it reduces the quantity of labour supplied
• B)it increases the quantity of labour demanded
• C)it results in surplus of labour in the labour market
• D)it decreases unemployment

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Definitions:

Job Enrichment

An approach to redesign jobs in a way that increases the activities involved and gives employees more control and responsibility.

Practising Managers

Individuals who actively engage in managing a business or specific departments, applying their knowledge and experience to solve problems and achieve goals.

Stress-Producing Situations

Scenarios or conditions that cause a significant amount of stress, impacting an individual's well-being or performance.

Return on Investment

A measure used to evaluate the efficiency or profitability of an investment, calculated by dividing the profit from an investment by the cost of the investment.