If an Industrial Union Is Formed to Bargain with a Monopsonistic

question 187

Multiple Choice

If an industrial union is formed to bargain with a monopsonistic employer, then in this labor market,

• A) the resulting wage rate will always be above the competitive level.
• B) employment may either increase or decrease.
• C) employment will increase.
• D) employment will decrease.

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Definitions:

Acid-test Ratio

A financial metric that measures a company's ability to pay its current liabilities without relying on the sale of inventory.

Debt to Assets Ratio

A financial metric indicating the proportion of a company's assets financed through debt, used to assess financial leverage.

Profit Margin

A financial metric used to evaluate the profitability of a business, calculated by dividing net income by sales.

Operating Expenses

Costs associated with the day-to-day operations of a business, such as rent, utilities, and salaries, excluding the cost of goods sold.