The Purpose of a Labour Union Is to

question 117

Multiple Choice

The purpose of a labour union is to

• A)maintain a minimum level of employment.
• B)exploit its labour-market power in the same way a monopolist exploits its market power in product markets.
• C)exploit its labour-market power in the same way a monopolist exploits its market power in labour markets.
• D)increase employment in its industry.
• E)decrease employment in its industry.

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Definitions:

Efficient Input Use

Utilization of inputs in a manner that maximizes the output or minimizes the cost under given technology and constraints.

MRTS

The Marginal Rate of Technical Substitution measures the rate at which one input can be substituted for another input in the production process, while keeping output constant.

Pareto Optimality

A distribution of resources where no one can be made better off without causing detriment to at least one other person.

Utilities Possibilities Frontier

A graphical representation that shows the maximum number of goods or services that two countries can produce using their resources efficiently.