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Scenario: Truck Drivers Across the Country Are on Strike in an Effort

Question 168

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Scenario: Truck drivers across the country are on strike in an effort to negotiate higher wages. Currently the labor market in this industry clears at WM and QM, as shown in the figure below.
Scenario: Truck drivers across the country are on strike in an effort to negotiate higher wages. Currently the labor market in this industry clears at WM and QM, as shown in the figure below.    -Refer to the scenario above.Why might the truck driver's employers want to pay higher wages even if the negotiations are not successful? A)  Because they would be able to contribute to decreased unemployment. B)  Because they would be able to contribute to decreased poverty. C)  Because it may help avoid costly turnover. D)  Because it will enable them to hire only workers with higher reservation wages.
-Refer to the scenario above.Why might the truck driver's employers want to pay higher wages even if the negotiations are not successful?


A) Because they would be able to contribute to decreased unemployment.
B) Because they would be able to contribute to decreased poverty.
C) Because it may help avoid costly turnover.
D) Because it will enable them to hire only workers with higher reservation wages.

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