If the Price of Output Increases, the Equilibrium Wage of Workers

question 228

Multiple Choice

If the price of output increases, the equilibrium wage of workers who produce that output will ________ and ________ workers will be hired.

• A) increase; more
• B) increase; fewer
• C) decrease; more
• D) decrease; fewer

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Definitions:

Layoffs

The process of reducing a company's workforce to cut costs, typically not related to individual performance.

Exclusive Representation

The legal right and responsibility of a union to be the sole representative of all employees in a bargaining unit, negotiating on their behalf for wages, hours, and other terms and conditions of employment.

Majority Support

The condition in which the greater part of a specific group or majority holds a particular opinion or position.

Nonmajority Unions

Labor unions that represent a subset of employees within a workplace or industry, rather than holding majority support among all workers.