Question

Question

10
A)
The Bureau of Labor statistics identifies a trend in the labor market for doctors, where wageshave increased significantly over the past several years. As a result of this trend, more individualswithin the economy enter the labor market to become doctors. How does this influence wages andemployment within the labor market?
(1 point)
The market equilibrium wage will increase, and the equilibrium quantity of labor will increase.
The market equilibrium wage will decrease, and the equilibrium quantity of labor will increase.
The market equilibrium wage will increase, and the equilibrium quantity of labor will decrease.
The market equilibrium wage will decrease, and the equilibrium quantity of labor will decrease.
A)
In arbitration, what do leaders of the labor union and the representatives of companymanagement agree to?
(1 point)
to bring a third party into their negotiations who will help them negotiate, but who does not have the
power to make binding decisions
to negotiate with one another and to understand that management reserves the right to make
binding decisions for both parties
to negotiate with one another and to understand that the labor union reserves the right to make
binding decisions for both parties
to bring a third party into their negotiations who has the ability to make binding decisions

Answer 1

Question 10A:

The correct answer is: The market equilibrium wage will decrease, and the equilibrium quantity of labor will increase.

Explanation: The significant increase in wages for doctors attracts more individuals to enter the profession. As the supply of doctors increases due to more people pursuing this career, the equilibrium quantity of labor (number of doctors) will increase. However, an increase in supply, with demand remaining constant, typically leads to a decrease in equilibrium wage rates in a competitive market.

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Question 10B:

The correct answer is: to bring a third party into their negotiations who has the ability to make binding decisions.

Explanation: Arbitration involves bringing in a neutral third party who listens to both sides of the dispute and makes a decision that is binding on both the labor union and management. This is different from mediation, where a third party helps facilitate negotiations but does not make binding decisions.