Multiple Choice
Trade unions cause unemployment because the union contract wage is set:
A) below the market wage, causing a shortage of labour.
B) below the market wage, causing a surplus of labour.
C) above the market wage, causing a surplus of labour.
D) above the market wage, causing a shortage of labour.
Correct Answer:

Verified
Correct Answer:
Verified
Q20: Why would a firm pay efficiency wages?
Q33: Why are policy makers concerned about rising
Q34: Which of the following is an economic
Q36: Which of the following is an example
Q37: Discuss the trends in labour force participation
Q39: How are 'discouraged workers' classified by the
Q40: Which of the following describes actual trends
Q41: Except for recessions, the duration of unemployment
Q43: Most economists agree that trade unions reduce
Q125: Describe the three types of unemployment.