Refer to the Following Graph, in Which Wc Is the Competitive

question 47

Multiple Choice

refer to the following graph, in which Wc is the competitive wage and Ic is the union’s utility level at the competitive wage and employment level.




-The wage/employment combination given by W_b/Q₂ is:

• A)efficient
• B)inefficient in that a slightly lower wage and slightly more employment would leave both the firm and the union better off
• C)inefficient in that a slightly higher wage and slightly less employment would leave both the firm and the union better off
• D)inefficient in that firm profits are lower than they would be at W_c/Q_c

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Definitions:

Morally Wrong

Actions or behaviors that are considered unethical or evil according to societal, cultural, or personal standards.

Economic Threat

A potential risk that could negatively impact the economic stability or growth of a country or region.

Armed Slaves

Armed slaves were enslaved individuals who were armed and organized to fight, commonly in the context of slave revolts or during wartime when they were promised freedom for service.