Asked by Courtney Coleman on Jun 27, 2024
Verified
In the mainstream economics school of thought, labor unions are:
A) Necessary to facilitate movement of supply and demand to the optimal market wage.
B) Monopolies that try to restrict the supply of labor and benefit only a few at the expense of others.
C) Create unproductive conflict.
D) Important tools for eliminating capitalism.
Market Wage
The prevailing wage rate paid in the market for a particular job, determined by supply and demand for that job.
Supply Of Labor
The total hours that workers wish to work at a given wage rate; it's influenced by factors like population, labor force participation, and working hours.
- Comprehend the viewpoints of various theoretical frameworks regarding unions and their function in addressing market flaws.
Verified Answer
PS
Pedro SanchezJul 01, 2024
Final Answer :
B
Explanation :
In mainstream economics, labor unions are often viewed as monopolies that restrict the supply of labor, resulting in higher wages for their members but lower employment levels and wages for non-members. This is seen as a negative outcome that benefits only a few at the expense of others.
Learning Objectives
- Comprehend the viewpoints of various theoretical frameworks regarding unions and their function in addressing market flaws.