Suppose That Butchers and Bakers Have No Unions

question 494

Multiple Choice

Suppose that butchers and bakers have no unions. Now suppose the butchers form a union. What does this do the labor supply of and wages of bakers?

• A)It increases the labor supply and wages of bakers.
• B)It increases the labor supply and decreases the wages of bakers.
• C)It decreases the labor supply and increases the wages of bakers.
• D)It decreases the labor supply and wages of bakers.

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Definitions:

Productivity

The measure of the efficiency of production, often quantified as the ratio of output to input in the production process.

Investment

The purchase or construction of any new plant, equipment, or residential housing, or the accumulation of inventory; represented by I.

National Income

The total income earned by a country's population, including wages, profits, and rent, and the sum of all incomes earned by individuals and businesses.

Corporate Profits

The earnings generated by companies after covering their operational costs, taxes, and expenditures.