Which one of the following statements about the bargaining power of workers and the nominal wage is INCORRECT? (a) An increase in unemployment benefits may result in an increase in the nominal wage; (b) If workers expect prices to increase, they will bargain for a higher nominal wage; (c) The easier it is to replace a worker, the more bargaining power such workers have; (d) Given that labour is the only production factor used, an increase in the bargained nominal wage will not lead to an increase in the real wage.

Bargaining power refers to ability of a worker to get wages as demanded by them.

Answered: Which one of the following statements…

Economics: Private and Public Choice (MindTap Course List)

16th Edition

ISBN:9781305506725

Author:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson

Publisher:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson

Chapter26: Earnings, Productivity, And The Job Market

Section: Chapter Questions

Problem 11CQ

See similar textbooks

Related questions

Question

Which one of the following statements about the bargaining power of workers and the nominal wage is INCORRECT?

(a)	An increase in unemployment benefits may result in an increase in the nominal wage;
(b)	If workers expect prices to increase, they will bargain for a higher nominal wage;
(c)	The easier it is to replace a worker, the more bargaining power such workers have;
(d)	Given that labour is the only production factor used, an increase in the bargained nominal wage will not lead to an increase in the real wage.

Expert Solution

Trending now

This is a popular solution!

Step by step

Solved in 2 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, economics and related others by exploring similar questions and additional content below.

Similar questions