If a Union Is Successful in Negotiating a Wage Rate

question 223

Multiple Choice

If a union is successful in negotiating a wage rate which is above the market clearing wage, then which of the following would not occur?

• A) The higher wages attract more workers leading to a shortage of jobs.
• B) Management may replace part of the workforce with machinery.
• C) To handle the surplus of labor the union will form a closed shop.
• D) The union may shift the supply of labor curve by developing methods to ration jobs.

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Definitions:

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