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Which of the Following Is the Most Correct Regarding the Effects

Question 39

Multiple Choice

Which of the following is the most correct regarding the effects of unions on the wages and employment of non-union employees:


A) The crowding effect puts upward pressure on non-union wages.
B) The threat effect puts upward pressure on non-union wages.
C) The threat effect increases the level of employment of non-union employees.
D) Unions always lead to increased wages and levels of employment for non-union employees.
E) Unions never lead to increases in wage levels for non-union employees.

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