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The Workers in Market 1 and Market 2 Are Equally

Question 133

Multiple Choice

  The workers in Market 1 and Market 2 are equally qualified;they can easily move between industries. -Refer to the diagrams above.Suppose that a labour union forms in market 1 and succeeds in raising the wage to W1.In market 2,the wage rate __________ because __________. A)  falls;workers are less productive B)  rises;workers are more productive C)  falls;the supply of workers increases D)  falls;demand for the output falls E)  rises;the union may come there next The workers in Market 1 and Market 2 are equally qualified;they can easily move between industries.
-Refer to the diagrams above.Suppose that a labour union forms in market 1 and succeeds in raising the wage to W1.In market 2,the wage rate __________ because __________.


A) falls;workers are less productive
B) rises;workers are more productive
C) falls;the supply of workers increases
D) falls;demand for the output falls
E) rises;the union may come there next

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