Suppose a Union Successfully Negotiates for Its Members a Wage

question 74

Multiple Choice

Suppose a union successfully negotiates for its members a wage rate that is above the competitive wage rate, then

• A) there will be a surplus of jobs.
• B) antitrust laws become effective.
• C) there will be downward pressure on the wage rate until equilibrium is established.
• D) there will be an excess supply of labor.

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Definitions:

Income Pyramid

A representation that illustrates the distribution of income across different segments of the population, usually showing a wide base of low-income earners and a narrow top of high-income earners.

Socioeconomic Group

A division of society based on social and economic status.

Daily Wage

The amount of money that a worker earns for a day's work, often used in contexts where labor is paid on a day-to-day basis rather than salaried.

Multilateral Aid

Assistance provided by multiple countries or international organizations to support development or humanitarian efforts in other nations.