Which of the Following Is Correct

question 90

Multiple Choice

Which of the following is correct?

• A) Nearly all economists believe that unions are bad for the economy as a whole.
• B) Unions raise wages above the competitive equilibrium level.
• C) Unions increase the level of employment in unionized firms.
• D) Unions decrease the level of employment in nonunionized firms.

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Definitions:

Renting

The act of paying for the use of something, typically property, land, or a vehicle, owned by another person or company, over a specific period.

Additional Cost

Expenses that are not previously planned or accounted for, often arising unexpectedly in the course of an action or project.

Conditional Factor Demand Function

Represents the quantity of an input demanded at each level of output, prices of inputs, and technology, given the firm's optimization behavior.

Optimal Factor Choice

A decision-making process in which a firm determines the most efficient combination of factors of production (labor, capital, etc.) to maximize output or minimize costs.