Suppose a Powerful Labor Union Negotiates a Wage for Its

question 82

Multiple Choice

Suppose a powerful labor union negotiates a wage for its members above the equilibrium wage rate in a previously nonunionized market.A likely result of this is that:

• A) the union will have difficulty recruiting new members.
• B) union members will be able to work more overtime than before.
• C) this firm will make up for the higher wage rate by expanding output.
• D) not everyone who wants to work at the new wage will be able to find jobs.

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Definitions:

Limited Liability Company

A business structure that combines the pass-through taxation of a partnership or sole proprietorship with the limited liability of a corporation.

Limited Rights

Rights that are restricted by terms or extent, often used in the context of intellectual property or contractual agreements.

Limited Partnership

A business arrangement where at least one partner is a general partner who takes on unlimited liability, while others are limited partners whose liability is restricted to their investment in the partnership.

Federal Law

Laws that have been enacted by the national government of a country and which apply to the entire nation, superseding local or state laws where conflicts occur.