If union demands result in a surplus of labor in some industries, the resulting
a. increased demand for labor in the nonunion sector drives nonunion wages up
b. decreased demand for labor in the nonunion sector drives nonunion wages down
c. increased supply of labor in the nonunion sector drives nonunion wages down
d. increased supply of labor in the nonunion sector drives nonunion wages up
e. decreased supply of labor in the nonunion sector drives nonunion wages up
Question 2
Which of the following is true?
a. International trade makes it possible for a country's consumption possibilities to exceed its production possibilities.
b. International trade requires that a country's production possibilities exceed its consumption possibilities.
c. A country's production possibilities always equal its consumption possibilities.
d. A country's consumption possibilities can never equal its production possibilities because of leakages in the system.
e. As long as there is full employment of resources, a country's production possibilities will exceed its consumption possibilities even with trade.
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