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.
Which of the following describes the effect of the changes in the manufacturing
labor market on the market for service workers, which is
9. Problems and Applications Q9
Structural unemployment is sometimes said to result from a mismatch between the
job skills that employers want and the job skills that workers have. To explore this
idea, consider an economy with two industries: auto manufacturing and aircraft
Assume that workers in these two industries require similar amounts of training, and
they can choose which industry to train for at the beginning of their careers.
True or False: Wages in the auto manufacturing industry would be less
Suppose that one day the economy opens itself to international trade and, as a result, starts
importing autos and exporting aircraft.