Which of the Following Best Describes the Impact of Unionization

question 174

Multiple Choice

Which of the following best describes the impact of unionization on given occupations?

• A) It results in ease of entry and tends to lead to an increase in wage rates.
• B) It results in ease of entry and tends to lead to a decrease in wage rates.
• C) It results in barriers to entry and tends to lead to a decrease in wage rates.
• D) It results in barriers to entry and tends to lead to an increase in wage rates.

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Definitions:

Supply-siders

Economists who believe reducing barriers for people to produce (supply) goods and services, like lower taxes, will stimulate economic growth.

Curing Recessions

Efforts and policies aimed at stimulating economic recovery and ending periods of economic decline.

Keynesian Economics

As formulated by John Maynard Keynes, this school believed the private economy was inherently unstable and that government intervention was necessary to prevent recessions from becoming depressions.

Crude Quantity Theory

A theoretical framework suggesting that changes in money supply have a direct, proportional effect on the price level in an economy.