Which of the Following Is Correct

question 5

Multiple Choice

Which of the following is correct?

• A)In unionized industries,wages are above the level that would prevail in competitive markets.
• B)The introduction of a union in some industry reduces the quantity of labor demanded in that industry,causes some workers in that industry to be unemployed,and reduces wages in the rest of the economy.
• C)Critics argue that the allocation of labor resulting from unions is both inefficient and inequitable.
• D)All of the above are correct.

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Definitions:

Long-Run Aggregate Supply

Represents the total production of goods and services in an economy at full employment, without any market frictions.

Aggregate Quantity Demanded

The total amount of a good or service that consumers are willing and able to purchase at a given price level in an economy.

Aggregate Demand Curve

A graph showing the relationship between the total quantity of goods and services demanded across all sectors of an economy and the price level, all else being equal.

Long-Run Aggregate Supply Curve

A graphical representation that shows the relationship between the overall price level and the quantity of goods and services produced by an economy when all resources are fully employed.