What Is the Effect of Unions on Wages and Employment

question 100

Multiple Choice

What is the effect of unions on wages and employment?

• A) Unions are unlikely to affect wages and employment.
• B) Unions raise wages above the competitive equilibrium level.
• C) Unions increase the level of employment in unionized firms.
• D) Unions decrease the level of employment in nonunionized firms.

---

Definitions:

Attitudes

A settled way of thinking or feeling about something, which often reflects a person's beliefs or feelings.

Despair

A deep sense of hopelessness and loss of purpose, often occurring in the face of overwhelming adversity or disappointment.

Dead Body

The remains of a once-living organism that has ceased all biological functions.

Cultural Values

The core principles and ideals upon which an entire community exists and functions, shaping its practices, beliefs, and behaviors.