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.

---

Definitions:

Legitimacy

The general belief that a rule, institution, or leader has the right to govern or command, often based on law, custom, or consent.

Chiefdoms

Socio-political organizations in which authority is centralized in a single leader who wields economic, political, and ceremonial control, often hereditary.

Extremely Unstable

A situation or condition that is highly unpredictable and may change abruptly.

Igbo

An ethnic group primarily located in southeastern Nigeria, known for their rich culture and history.