When a Union Raises the Wage Above the Equilibrium Level

question 37

Multiple Choice

When a union raises the wage above the equilibrium level, ceteris paribus:

• A) it reduces the quantity of labour supplied
• B) it increases the quantity of labour demanded
• C) it results in surplus of labour in the labour market
• D) it decreases unemployment

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Definitions:

Master Account

A primary account that is used to manage multiple sub-accounts under a single umbrella, often for purposes of consolidation and easier management.

Same Day Value

A banking term indicating that a fund transfer or transaction will be credited or debited with its value dated the same day the instruction is received.

Cash Concentration Account

A cash concentration account is a bank account used by companies to consolidate and manage their cash flows, usually involving the transfer of funds from multiple accounts into this single account.

Firm Benefits

Advantages or favorable factors resulting from the policies or practices of a particular company, including financial remuneration and non-monetary perks.