The diagram of the labour model depicted below compares the labour market outcomes when there are no trade unions, i.e., where wages are bargained between firms and individual workers (point X) with two cases, points Z and Y, where wages are bargained between firms and trade unions.  a) Describe the labor market outcome at point Z and compare it with the labor market equilibrium at point X. [5 points]b) Explain the economic factors that could lead the labor market to be at point Z instead of at point X. [5 points]c) Describe the labor market outcome at point Y and compare it with the labor market equilibrium at point X. [5 points]d) Explain the economic factors that could lead the labor market to be at point Y instead of at point X. [5 points]

a) Describe the labor market outcome at point Z and compare it with the labor market equilibrium at point X. [5 points]b) Explain the economic factors that could lead the labor market to be at point Z instead of at point X. [5 points]c) Describe the labor market outcome at point Y and compare it with the labor market equilibrium at point X. [5 points]

Consider the following model of the labour market:Labour supply:  =  ×  + Labour demand:  =  − The endogenous variables area)  and b)  and the equilibrium wage, c)  and the equilibrium wage, d) the equilibrium quantity of labor, , and wage, e)  and the equilibrium quantity of labor, 

A labor union introduced in a perfectly competitive labor market causes:A.no change in earnings.B.lower earnings.C.no change in the number of workers hired.D.more workers being hired.E.higher earnings.

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.

With reference to the labour market model, which of the following statements is correct?Select one correct answerGroup of answer choicesThe unemployed can get a job by offering to work for a wage lower than the equilibrium wageFirms aim to set as high a price as possible.Once they have the job, employees are better off not exerting any effort in their work.In order to motivate employees to work hard and well, firms set the wage sufficiently high so that workers receive an employment rent, in other words, there is a nonzero cost of job loss.