If There Were an Increase in the Share of the Labour

question 29

Multiple Choice

If there were an increase in the share of the labour force that is unionized,it would likely lead to ________ wage flexibility,which would ________ the NAIRU.

• A)more; increase
• B)more; decrease
• C)less; increase
• D)less; decrease
• E)less; not change

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Definitions:

Government Involvement

The participation or intervention by government entities in various sectors of the economy or specific activities.

Coase Theorem

A principle that suggests that if property rights are clearly defined and transaction costs are low, externalities can be efficiently resolved through private bargaining, regardless of who holds the rights.

Basic Rights

Fundamental entitlements and freedoms that are guaranteed to individuals, often protected by law or international treaties.

Impediments To Bargaining

Factors or conditions that obstruct or complicate the process of reaching a negotiation agreement.