Labour unions support the minimum wage because
A) it puts upward pressure on all wages.
B) labour unions prefer to operate in black markets.
C) the increased unemployment is good for labour.
D) union members are usually paid the minimum wage.
E) the value associated with the deadweight loss goes to labour unions.

Question

Quizplus · Accepted Answer

Labour unions support the minimum wage because it puts upward pressure on all wages. When the minimum wage increases, wages for union members and non-union members also tend to increase. This is because employers will need to offer higher wages to attract workers, to meet the new minimum wage requirements.

Labour Unions Support the Minimum Wage Because