Consider a Labor Market with Two Sectors-A Union Sector and a Non-Union

question 15

Multiple Choice

Consider a labor market with two sectors-a union sector and a non-union sector-with perfectly inelastic labor supply. The presence of the union sector causes all of the following results except:

• A) the union wage is greater than the competitive wage when there is no union sector.
• B) the nonunion wage is less than the competitive wage when there is no union sector.
• C) fewer workers are hired in the union sector than those same firms would hire if there was no union sector.
• D) more workers are hired in the nonunion sector than those same firms would hire if there was no union sector.
• E) total surplus added between the union sector and the nonunion sector is the same as total surplus when there is no union sector.

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Definitions:

Economic Development

The process by which the overall health, well-being, and academic level of the general population of a specific area or country improves.

Disfranchisement

The act of denying someone the right to vote in public elections, often based on legal, socioeconomic, or racial criteria.

Appeal of Forty Thousand

A petition to the Pennsylvania legislature in 1838, calling for the right to vote for Black men, signed by over 40,000 Black and white citizens.

Conscience

An inner feeling or voice acting as a guide to the rightness or wrongness of one's behavior, often associated with moral and ethical judgments.