Unions Do Not Cause Which of the Following

question 3

Multiple Choice

Unions do not cause which of the following?

• A) frictional unemployment
• B) the wage to rise above the equilibrium level
• C) conflict between insiders who benefit from high union wages and outsiders who do not get the union jobs
• D) reduced wages in nonunionized industries

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Definitions:

Income

The money received by an individual or organization, typically measured on a regular basis, for work or through investments.

MRS of Pencils

The marginal rate of substitution of pencils, indicating how much of another good a consumer is willing to give up for one more pencil.

Utility

In economics, a measure of satisfaction or happiness that a consumer derives from consuming goods and services.

Consumption Bundle

A collection of goods and services that an individual or household purchases over a given period.