Suppose a Labor Union Is Able to Effectively Negotiate Higher

question 70

Multiple Choice

Suppose a labor union is able to effectively negotiate higher wages for its members and is able to prevent the firm from hiring new workers at a lower wage. The best explanation for this is

• A)the minimum-wage explanation.
• B)the job-search explanation.
• C)the discouraged-worker explanation.
• D)the insider-outsider explanation.
• E)the efficiency-wage explanation.

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