Suppose the Market for Industrial Workers Has Recently Unionised and Successfully

question 105

Multiple Choice

Suppose the market for industrial workers has recently unionised and successfully negotiated a mandatory breaks every two hours.The market has the usual characteristics, with downward sloping demand and upward sloping supply.Which of the following statements regarding unionisation is true?
(i) mandatory breaks means each worker becomes less productive, shifting labour demand downwards
(ii) mandatory breaks means each worker becomes less productive, lowering the value of the marginal product of labour
(iii) mandatory breaks increases the non-monetary benefits of industrial work, leading to an increase in labour supply

• A)(i) and (ii)
• B)(ii) and (iii)
• C)(i) and (iii)
• D)(i), (ii) and (iii)

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Definitions:

Hedged

involves utilizing financial instruments or market strategies to offset the risk of adverse price movements.

Silver Price

The market value of one ounce (or another unit) of silver, which can fluctuate based on supply and demand dynamics.

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