11  A trade union is negotiating a wage rise for its members.What will increase the chance of the wage rise being granted?1 pointA The company’s product has many substitutes.B The economy is entering a period of recession.C The government has made strike action illegal.D Wages are a small part of the company’s costs.Clear selection

8  A group of workers in a firm joins a trade union.What would the union be expected to do?1 pointA arrange for labour-saving technology to be introducedB discuss safety issues in the workplace with the employerC ensure job security by promoting the firm’s products through advertisingD negotiate new contracts with major buyers of the firm’s products

According to the labor supply and demand model, as the real wage rises,ResponsesA workers are willing to provide less labor, and employers are willing to provide more jobs.workers are willing to provide less labor, and employers are willing to provide more jobs.B workers are willing to provide less labor, and employers are willing to provide fewer jobs.workers are willing to provide less labor, and employers are willing to provide fewer jobs.C workers are willing to provide more labor, and employers are willing to provide fewer jobs.workers are willing to provide more labor, and employers are willing to provide fewer jobs.D workers are willing to provide more labor, and employers are willing to provide more jobs.

Unemployment may rise if trade unions negotiate a wage which is: below the market wage, causing a shortage of labour. below the market wage, causing a surplus of labour. above or below the market wage - trade union activities will always cause some level of unemployment. above the market wage, causing a surplus of labour. above the market wage, causing a shortage of labour.

Assume a labour market for fruit picking, where the wage rate is determined by the demand and supply of labour. Describe what will happen to the wage and the quantity of labour employed in the labour market with the following government policies based on union pressure. a) A restriction on the number of backpackers allowed in Australia. b) A legally required increase in the minimum wage of 10%. c) The imposition of minimum requirement for locally produced fruits to be used by Australian jam producers. d) The imposition of a sales tax on fruits imported from overseas.

Which one of the following is most likely to cause increased unemployment in an economy?A A decrease in the economy’s central bank interest rate.B An increase in the economy’s money supply.C A competitive devaluation of the economy’s currency.D An increase in protectionism by the economy’s trade partners.