Many Unions Attempt to Raise the Hourly Wages Received by Their

question 75

Multiple Choice

Many unions attempt to raise the hourly wages received by their members by restricting the supply of workers firms can hire from.Assuming the demand for workers who belong to these unions is inelastic,this would cause:

• A)wages of individual union members to decrease and the total (combined)income of union members to increase.
• B)wages of individual union members and the total (combined)income of union members to decrease.
• C)wages of individual union members to increase and the total (combined)income of union members to decrease.
• D)wages of individual union members and the total (combined)income of union members to increase.

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Definitions:

Free Enterprise

An economic system where private individuals rather than the government have the right to own property and conduct businesses, subject to minimal regulatory constraints.

Laissez-Faire

A belief system in economics that supports capitalism with minimal to no government interference.

Market System

An economic system in which decisions regarding investment, production, and distribution are based on supply and demand, and prices of goods and services are determined in a free price system.

Self-Interest

acting in a way that is most beneficial to oneself, a fundamental concept in economics that drives individual decision-making.