A Union Is Formed to Restrict Labour Supply in a Previously

question 77

Multiple Choice

A union is formed to restrict labour supply in a previously perfectly competitive labour market. If the union succeeds in raising the wage, everything else remaining the same,

• A)employment will fall.
• B)employment will rise.
• C)employment will not change.
• D)the total wage bill will rise.
• E)the total wage bill will fall.

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Definitions:

Proceed

To proceed means to move forward or continue with an action or process after a pause or interruption.

Legal Aid

A service designed to provide free or low-cost legal assistance to those unable to afford legal representation.

Yearly Return

The amount of profit or loss realized from an investment over a one year period, usually expressed as a percentage.

Fixed Costs

Costs that do not change with the level of output or activity, over a certain period or range of production.