Which of the Following Is True of Labor Markets

question 44

Multiple Choice

Which of the following is true of labor markets?

• A) The union can never acquire monopoly power over the labor supply.
• B) The union supplies the labor,but the contract has no authority on fixing its price.
• C) Unions stay away from employers that have power to influence prices in the product market and/or wages in the labor market.
• D) A contracted wage elasticizes the labor supply at the negotiated rate.

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Definitions:

Warranty

A guarantee provided by the seller or manufacturer concerning the condition of its product, promising to repair or replace it if necessary within a certain period.

Incidental Damages

Compensation for unforeseen damages that occur as a secondary effect of a breach of contract.

Resell

The act of selling an item or asset previously bought, typically for profit.

Public Sale

An auction or sale of goods or assets that is open to the general public and conducted by a legal or governmental authority.