What Negative Impacts Can Unions Have on Industries and the Economy

question 137

Multiple Choice

What negative impacts can unions have on industries and the economy?

• A) They can initiate worker strikes and sit-ins which stall production.
• B) By limiting the supply of labor in one industry they can cause an increased supply of labor in other industries, which causes lower wages in those industries.
• C) They can limit firms to hiring only unionized workers, which could stop firms from hiring the labor with the most appropriate skills.
• D) All of the answers are correct.

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Definitions:

Alpha

In statistics, the threshold probability of wrongly rejecting the null hypothesis, typically set at 0.05.

T-statistic

A ratio computed from the observed sample mean difference divided by the standard error of the mean, used in hypothesis testing.

Critical Values

Critical values are thresholds in statistical hypothesis testing that define the boundary between the region where the null hypothesis is rejected and the region where it is not rejected.

Level of Significance

The probability of rejecting the null hypothesis when it is actually true, used as a criterion for deciding the outcome of a statistical test.