In the Case of a Vertical Contract Curve, Union Negotiations

question 6

Multiple Choice

In the case of a vertical contract curve, union negotiations will result in the firm hiring

• A) more workers and at a higher wage than it would in the absence of the union.
• B) the same number of workers but at a higher wage than it would in the absence of the union.
• C) fewer workers but at a lower wage than it would in the absence of the union.
• D) fewer workers but at a higher wage than it would in the absence of the union.
• E) the same number of workers but at a lower wage than it would in the absence of the union.

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Definitions:

Business Person

An individual who operates a business or enterprise, taking on greater than normal financial risks in order to do so.

Internet Transactions

The buying and selling of goods and services or the transmitting of funds or data, over an electronic network, primarily the internet.

Offer

An offer from one entity to another aimed at establishing a legal contract if accepted.

Contract

An agreement creating obligations enforceable by law, formed by the mutual consent of parties with capacity to agree.