labour demanded and a(n) in the quantity of
labour supplied. The actual number of workers employed
will.
d. A legislated and binding minimum wage in a market
where the employer has monopsony power and the wage
is initially below the competitive level will lead to a(n)
in the number of workers employed.
e. For a monopsonist, the upward-sloping supply of labour
curve represents its cost of labour. The marginal
cost of labour to the monopsonist lies the supply
curve because the increased wage required to hire
extra worker must be paid to workers.
3. Fill in the blanks to make the following statements correct.
a. Union membership in Canada as a share of the labour
force has considerably over the past 50 years to its
current rate of less than 25 percent. Union membership is
highest in the sector of the Canadian economy, at
over 70 percent.
b. A union faces a fundamental conflict between the level of
for its workers and the of workers in the union.
c. Canadian evidence suggests that unionized workers earn
between and percent higher wages than non-
unionized workers with similar characteristics. This
difference in wages is referred to as the premium.
4. Fill in the blanks to make the following statements correct.
a. The functional distribution of income refers to the
distribution of national income among , , and
