Suppose That a Labor Market Is Initially in Equilibrium

question 213

Multiple Choice

Suppose that a labor market is initially in equilibrium. If the minimum wage is set above the initial equilibrium wage rate

• A) all workers in the labor market will be better off, receiving a higher wage per hour.
• B) the labor supply curve will shift to the right.
• C) the quantity demanded of labor will decrease along the given labor demand curve.
• D) all of the above

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Definitions:

National Labor Relations Act

Enacted in 1935, this foundational US labor law protects the rights of workers to organize into trade unions, engage in collective bargaining, and take collective action such as strikes.

Voluntarily Begin Negotiations

The process where parties decide to start discussions and bargaining without being compelled by law or external pressures.

Decertification

The process by which a labor union is removed as the bargaining representative of a group of employees, typically through a vote among the employees.

Certifying

The process of formally validating the qualifications, capabilities, or quality of an individual or entity.