Sample questions for midterm

When a union raises the wage above the equilibrium

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When a union raises the wage above the equilibrium level, it A. reduces both the quantity of labor supplied and the quantity of labor demanded. B. raises the quantity of labor supplied and reduces the quantity of labor demanded. C. reduces the quantity of labor supplied and raises the quantity of labor demanded. D. raises both the quantity of labor supplied and the quantity of labor demanded. Unions contribute to A. structural but not frictional unemployment. B. frictional but not structural unemployment. C. neither frictional nor structural unemployment. D. both frictional and structural unemployment.
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