Answered: Consider an economy with two labor…

Brief Principles of Macroeconomics (MindTap Course List)

8th Edition

ISBN:9781337091985

Author:N. Gregory Mankiw

Publisher:N. Gregory Mankiw

Chapter10: Unemployment

Section: Chapter Questions

Problem 8PA

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8. Problems and Applications Q8

Consider an economy with two labor markets: one for manufacturing workers and one for service workers. Suppose initially that neither is unionized.

Which of the following will happen to the manufacturing labor market if manufacturing workers formed a union? Check all that apply.

A)The wage of manufacturing workers will rise.

B)The quantity of manufacturing workers demanded will fall.

C)The quantity of manufacturing workers supplied will rise.

D)There will be an increase in employment of manufacturing workers.

Which of the following describes the effect of the changes in the manufacturing labor market on the market for service workers, which is not unionized? Check all that apply.

A)The wage of service workers will fall.

B)The supply of service workers will rise.

C)The demand for service workers will fall.

D)There will be an increase in employment in the service sector.

Note:- Please give the correct answer to this Economic problem. Select all the answer that is applied to this problem.

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