A Union Raises the Wage of Firm X from $10

question 15

Multiple Choice

A union raises the wage of firm X from $10 to $15 an hour.In which of these cases is there a direct reduction in the social welfare?

• A) Worker A retains their job at company X, such that company X's profits associated with worker A go down $5 an hour.
• B) Worker B, working for firm Y gets a lower wage due to the spill-over effect.
• C) Worker C, who is getting $7 an hour working for firm Z, would have otherwise gotten a job with firm X at a wage of $8.
• D) Worker D, who is working for firm M, gets a higher wage due to the threat effect.

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Definitions:

Pick's Disease

A rare form of dementia characterized by progressive degeneration of brain cells, especially in the frontal and temporal lobes.

Neurocognitive Disorders

A category of mental health disorders that primarily affect cognitive abilities including learning, memory, perception, and problem solving.

Women

Refers to adult human females, often discussed within various sociocultural, political, and health-related contexts.

Men

Adult human males, distinguished biologically by XY chromosomes, typically producing male hormones and secondary sexual characteristics.