Refer to the Given Data

question 106

Multiple Choice

Refer to the given data. Suppose that the union that provides labor to firms in this market successfully negotiates an increase in the wage rate from $12 to $16. As a result of the wage increase, firms will hire

• A)fewer workers, and the total paid out for wages will increase.
• B)fewer workers, and the total paid out for wages will decline.
• C)fewer workers, and the total paid out for wages will remain unchanged.
• D)more capital, if capital and labor are used in fixed proportions in production.

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Definitions:

Symbiosis

Relationship that occurs when two different species live together in a unique way; it may be beneficial, neutral, or detrimental to one or both species.

Community

A group of interacting living organisms sharing a populated environment, which can include various species in a specific area.

Competition

Results when members of a species attempt to use a resource that is in limited supply.

Secondary Succession

The process of ecological regeneration that occurs in an environment where a disturbance has destroyed a pre-existing community but left the soil intact.