Consider a Wage-Setting Union in an Otherwise Competitive Labour Market

Multiple Choice

Consider a wage-setting union in an otherwise competitive labour market.If the union sets a wage above the competitive level,the effect will be

A) to raise wages for all workers who wish to work in the industry.
B) to increase the amount of employment in the industry.
C) to create a group of workers who would like to obtain jobs in the industry but cannot do so.
D) a level of employment which is the same as that at the competitive equilibrium wage.
E) to cause the labour supply curve to shift to the right.