If,beginning from a Competitive Labor Market,some Workers Form a Union

question 2

Multiple Choice

If,beginning from a competitive labor market,some workers form a union and negotiate a higher rate for themselves,which of the following is likely to happen?

• A) Competition will force the wage rate in the non-union sector to increase to the level of the union wage.
• B) The marginal product of labor curve will increase in the unionized sector.
• C) Employment will move from the union to the non-union sector over time.
• D) Employment will increase in the union sector because workers will be attracted by the higher union wage.

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Definitions:

Storage

The process or means by which information, data, or materials are kept for future use or reference.

Integration

The process of combining parts into a whole, especially in the context of social and cultural groups within a society.

Working Memory

A newer understanding of short-term memory that focuses on conscious, active processing of incoming auditory and visual-spatial information, and of information retrieved from long-term memory.

Long-Term Memory

The phase of memory capable of storing information for an extended period, from hours to a lifetime.