Economics (AS & A Level) · May / June 2025 · Paper 34 · Question 12
9708Labour market forces and government intervention
What will increase the power of a trade union, allowing it to increase wages without reducing the employment of its members in a particular industry?
- AThe economy is experiencing a fall in the price of capital.
- BThe economy is experiencing rising employment.
- CThe price elasticity of demand for the industry's goods is equal to 1.
- DThe price elasticity of demand for the industry's goods is greater than 1.
As printed in the paper
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Correct answer: B. The economy is experiencing rising employment.
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