Which of the following describes the impact of unions on wages?
a. The high wages negotiated by the union drive up wages in the nonunion sector by
extension.
b. Collective bargaining has the effect of lowering wages in general to keep more
people employed.
c. By restricting membership, the union drives up union wages and drives down
nonunion wages.
d. The union has the collective power to enforce equilibrium wages for everyone.
c. By restricting membership, the union drives up union wages and drives down
nonunion wages.
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In the simplest Keynesian model of the determination of income, interest rates are assumed to be
A) exogenous and to gradually change. B) endogenous and to gradually change. C) exogenous and to remain constant. D) endogenous and to remain constant.
In the late 1990s, Thailand, Malaysia, and Indonesia all experienced sharp declines in the value of their currencies; this resulted in economic instability and crisis. The collapse in the values of their currencies undermined their development by:
A. decreasing political instability. B. decreasing population growth. C. increasing corruption. D. reducing investment.