If an Industrial Union Is Able to Negotiate a Wage

question 159

Multiple Choice

If an industrial union is able to negotiate a wage above the market-clearing wage, the non-union wage in other industries will

• A)increase
• B)decrease
• C)increase, if the union can restrict the supply of labor
• D)increase, if the union can increase the supply of labor
• E)decrease due to the strike-breaking activity of the firm

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Definitions:

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