Suppose That Grocery Clerks and Nurses Are Not Unionized

question 405

Multiple Choice

Suppose that grocery clerks and nurses are not unionized. If the nurses unionize, then

• A)the wages of both grocery clerks and nurses will rise.
• B)the wages of both grocery clerks and nurses will fall.
• C)the wages of grocery clerks will rise and the wages of nurses will fall.
• D)the wages of nurses will rise and the wages of grocery clerks will fall.

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Definitions:

Equality

Equality refers to the state of being equal, especially in status, rights, and opportunities.

Total Surplus

Total surplus refers to the sum of consumer surplus and producer surplus in a market, representing the overall benefit that market participants gain from engaging in trade.

High-cost Producer

A producer or company which has higher costs of production compared to competitors, often due to inefficient processes or higher input costs.

Low-cost Producer

A manufacturer or service provider with a competitive advantage allowing them to offer goods or services at a lower price than competitors, often due to operational efficiencies.