If an Industrial Union Is Able to Negotiate a Wage

question 159

Multiple Choice

If an industrial union is able to negotiate a wage above the market-clearing wage, the non-union wage in other industries will

• A)increase
• B)decrease
• C)increase, if the union can restrict the supply of labor
• D)increase, if the union can increase the supply of labor
• E)decrease due to the strike-breaking activity of the firm

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Definitions:

P-value

The probability of obtaining test results at least as extreme as the results observed, assuming that the null hypothesis is true.

Pearson Correlation

A measure of the linear correlation between two variables, giving a value between -1 and 1 where 1 implies a positive linear correlation, -1 a negative linear correlation, and 0 no linear correlation.

Null Hypothesis

A hypothesis that there is no significant difference or effect, serving as the default assumption to test against in statistical analysis.

Maximum Temperature

The highest recorded temperature in a specified period or area.