« previous next »

Author Question: What is collective bargaining? How can it result in higher unemployment in a country? What will ... (Read 74 times)

melina_rosy

  • Hero Member
  • *****
  • Posts: 531
on: Jun 30, 2018
What is collective bargaining? How can it result in higher unemployment in a country?
 
  What will be an ideal response?

Question 2

Consumption is likely to fall if ________.
 
  A) the number of mortgage defaults in an economy rises
  B) the revenue earned by firms increase
  C) the demand for labor rises
  D) the supply of labor decreases
Macroeconomics ¦ Acemoglu, Laibson, List ¦ 3rd Edition
Buy Test-Bank


stillxalice

  • Sr. Member
  • ****
  • Posts: 339
Reply #1 on: Jun 30, 2018
Answer to Question 1

Collective bargaining refers to contract negotiations between an employer and a labor union representing workers. One of the objectives of collective bargaining is to bargain for better wages for workers. As a result, collective bargaining fixes the wage rate above the market clearing level. Once the wages are fixed at a higher level, wage rigidity prevents it from falling. At this higher level of wage, quantity supplied of labor exceeds the quantity demanded of labor and this causes unemployment.

Answer to Question 2

A


Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
« previous next »
 

Did you know?

Complications of influenza include: bacterial pneumonia, ear and sinus infections, dehydration, and worsening of chronic conditions such as asthma, congestive heart failure, or diabetes.

Did you know?

Pope Sylvester II tried to introduce Arabic numbers into Europe between the years 999 and 1003, but their use did not catch on for a few more centuries, and Roman numerals continued to be the primary number system.

Did you know?

More than one-third of adult Americans are obese. Diseases that kill the largest number of people annually, such as heart disease, cancer, diabetes, stroke, and hypertension, can be attributed to diet.

Did you know?

In the United States, there is a birth every 8 seconds, according to the U.S. Census Bureau's Population Clock.

Did you know?

There used to be a metric calendar, as well as metric clocks. The metric calendar, or "French Republican Calendar" divided the year into 12 months, but each month was divided into three 10-day weeks. Each day had 10 decimal hours. Each hour had 100 decimal minutes. Due to lack of popularity, the metric clocks and calendars were ended in 1795, three years after they had been first marketed.

Longer regions have more crossovers and thus higher recombinant frequencies Longer regions have more crossovers and thus higher recombinant frequencies
Comparison of the level of skin damage as a result of the three different degrees of burns. Comparison of the level of skin damage as a result of the three different degrees of burns.
U.S. Unemployment Rates for Emerging Adults (Ages 16-24) U.S. Unemployment Rates for Emerging Adults (Ages 16-24)
Age-standardized disability-adjusted life year (DALY) rates from hepatitis B by country (per 100 000 ... Age-standardized disability-adjusted life year (DALY) rates from hepatitis B by country (per 100 000 ...
Average Annual Growth Rates of Population by Country Group Average Annual Growth Rates of Population by Country Group
The price of rice in a small country is currently $6 per pound. In order to help low-income ... The price of rice in a small country is currently $6 per pound. In order to help low-income ...
Video: Morphology of a tomato plant

For a complete list of videos, visit our video library