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Now suppose that the Nevada state government passes laws that make it easy for w

ID: 1100059 • Letter: N

Question

Now suppose that the Nevada state government passes laws that make it easy for workers to join a union. As a result of collective bargaining, the union is able to negotiate a wage of $7 per hour for its workers. How many union workers will be employed at the $7 wage?

Not sure how to do this one. Is there a formula I should be looking for?

The neighboring state of Arizona has laws that make it difficult for workers to join and form unions. How will the higher wage in Nevada for union workers affect the workers in Arizona (who are not allowed to join unions)?

A. All of the answers are likely to occur.

B. There will likely be a decrease in the wages paid to workers in Arizona.

C. The supply of labor in Arizona will increase as people unable to find jobs in Nevada move to Arizona.

D. The equilibrium number of employed labor in Arizona will likely rise.

Now suppose that the Nevada state government passes laws that make it easy for workers to join a union. As a result of collective bargaining, the union is able to negotiate a wage of $7 per hour for its workers. How many union workers will be employed at the $7 wage?

Not sure how to do this one. Is there a formula I should be looking for?

The neighboring state of Arizona has laws that make it difficult for workers to join and form unions. How will the higher wage in Nevada for union workers affect the workers in Arizona (who are not allowed to join unions)?

A. All of the answers are likely to occur.

B. There will likely be a decrease in the wages paid to workers in Arizona.

C. The supply of labor in Arizona will increase as people unable to find jobs in Nevada move to Arizona.

D. The equilibrium number of employed labor in Arizona will likely rise.


Explanation / Answer

C. The supply of labor in Arizona will increase as people unable to find jobs in Nevada move to Arizona

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