Unions might support a higher minimum wage because:
A. their constitutions obligate them to do so.
B. they feel a higher minimum wage will lower labor's tax payments for welfare programs.
C. a higher minimum wage makes less-skilled workers less substitutable for union workers.
D. the minimum wage is better targeted than are alternative income-maintenance programs.
Answer: C
You might also like to view...
Autarky is a situation in which a country
A) only imports products. B) only exports products. C) does not trade with other countries. D) has no absolute advantage in any production.
Economists Gary Becker and Kevin Murphy are associated with which of the following?
A) They discovered that price changes have both income and substitution effects. B) They have argued that social factors are not important in explaining the choices consumers make. C) Consumers appear to receive utility from consuming goods they believe are popular. D) They discovered the first example of a Giffen good.