Question

What effect do labor unions have on the unemployment rate? A. Labor unions can significantly increase the unemployment rate when members go on strike. B. By increasing the wage above market equilibrium, labor unions considerably decrease the unemployment rate. C. By increasing the wage above market equilibrium, labor unions considerably increase the unemployment rate. D. Since few non-government workers are unionized, there is no significant effect on the unemployment rate.

Answer 1

D) Since few non-government workers are unionized, there is no significant effect on the unemployment rate

Step-by-step explanation:

Labor unions are organizations of workers that bargain with employers for higher wages and better working conditions for their workers. Often, negotiated wages are higher than the market wage that would otherwise prevail. As a result of the above market wage, employers in these industries tend to hire fewer workers.

Answer 2

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Step-by-step explanation:

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