Suppose That the Labor Movement Has a Revival in the United

question 17

Multiple Choice

Suppose that the labor movement has a revival in the United States and the majority of workers join labor unions.As a result we would expect

• A)the labor force participation rate to fall.
• B)the unemployment rate to fall.
• C)the unemployment rate to rise.
• D)no change in the unemployment rate or labor force participation rate.

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Definitions:

Neoclassical Economics

An economic theory that focuses on how consumer demand and production costs influence price, output, and income distribution in markets.

Behavioral Economics

A field of study that examines how psychological, cognitive, emotional, cultural, and social factors affect the economic decisions of individuals and institutions.

Rational Decision Making

A process of making choices that are logically consistent and aim at maximizing an individual's self-interest.

Behavioral Economics

A field of economics that studies the effects of psychological, cognitive, emotional, cultural, and social factors on the economic decisions of individuals and institutions and how those decisions vary from those implied by classical theory.