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A Rise in the Minimum Wage Increases the Demand for Union

Question 1

Multiple Choice

A rise in the minimum wage increases the demand for union labour because this policy change


A) raises the productivity of union labour.
B) lowers the wage rate paid to union labour.
C) lowers the productivity of union labour.
D) lowers the cost of a substitute for union labour.
E) raises the cost of a substitute for union labour.

Correct Answer:

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