If Unions Raise Wages Above Their Market Clearing Level,then

question 30

Multiple Choice

If unions raise wages above their market clearing level,then

• A) more workers will be able to get better jobs, increasing employment.
• B) there will be a shortage of workers.
• C) persistently high rates of unemployment will result.
• D) this will be Pareto efficient.

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Definitions:

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A state of mind or feeling characterized by contentment, satisfaction, or happiness.

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Affective states that are unpleasant or undesirable, such as sadness, anger, or frustration.

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