An Increase in the Price of Labor Used to Produce

question 163

Multiple Choice

An increase in the price of labor used to produce good Y will lead to

• A)an increase in the market clearing price of good Y.
• B)an increase in the supply of good Y.
• C)a decrease in the demand for good Y.
• D)an increase in the demand for good Y.

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Definitions:

Federal Mediation and Conciliation Service

A U.S. government agency that provides mediation and conciliation services to facilitate the resolution of labor disputes between unions and employers.

Voluntary Mediation

A process where parties in dispute agree to seek a resolution with the help of a neutral third-party mediator without the involvement of a court.

Labor Dispute

Conflicts between employees and employers regarding working conditions, wages, contracts, or union rights.

Union Shop Clause

A provision in a collective bargaining agreement that requires employees to join the union within a certain period of employment.