Economics 9708 · AS & A Level · Long-run costs and economies of scale

Long-run costs and economies of scale — practice question

A government is concerned about the growing monopsony power of employers in the wage bargaining process. Which combination of policies is most likely to raise workers’ wages and improve their employment prospects?

  • Atrade union powers: strengthen; immigration controls: relax; national minimum wage: cut
  • Btrade union powers: strengthen; immigration controls: strengthen; national minimum wage: raise
  • Ctrade union powers: weaken; immigration controls: relax; national minimum wage: cut
  • Dtrade union powers: weaken; immigration controls: strengthen; national minimum wage: raise

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