An Industrial Union, Operating in an Otherwise Competitive Labor Market

question 77

Multiple Choice

An industrial union, operating in an otherwise competitive labor market, that cannot either increase the demand for or decrease the supply of labor is likely to try to:

• A) lower the wage, with the result that employment falls.
• B) raise the wage, with the result that employment rises.
• C) lower the wage, with the result that employment rises.
• D) raise the wage, with the result that employment falls.

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Definitions:

Public Good

A product or service that is available for all to consume, regardless of who pays and who doesn't, characterized by non-excludability and non-rivalry.

Free-ride

The act of benefiting from resources, goods, or services without paying for the cost of the benefit.

Rival

In economics, a good or service is considered rival if its consumption by one individual prevents simultaneous consumption by other individuals.

Excludable

Refers to a property of a good or service where it's possible to prevent people who have not paid for it from having access to it.