Restricting the Supply of Labor in Order to Increase Wages

question 91

Multiple Choice

Restricting the supply of labor in order to increase wages _____

• A)is a tactic used by service sector unions.
• B)is a tactic more likely to be used by the American Medical Association (AMA) than the United Auto Workers (UAW).
• C)is a tactic more likely to be used by the UAW than the AMA.
• D)is a tactic used solely by professional groups such as lawyers.
• E)has less effect on the wage than direct negotiation does.

---

Definitions:

Quasi-Fixed Costs

Costs that are not completely variable but do change with the level of output or activity over certain ranges or periods of time.

Production Function

A mathematical model that describes the relationship between input resources and the maximum output that can be produced with those resources.

Cost of Producing

The total expenses incurred in the manufacture of a product, including raw materials, labor, and overhead costs.

Orange Grower

An individual or business involved in the cultivation of orange trees for the purpose of fruit production.