Which of the following statements is true for the U.S. economy?
A) Higher wages in the unionized sectors of the economy push up wages in the nonunion sectors as well.
B) Inflation tends to accelerate when the proportion of the labor force that is unionized increases.
C) Union workers currently receive wages that are 21 percent higher, on average, than similar nonunion workers.
D) When we compare similar union and nonunion workers, we find virtually no difference in the wages they receive.

Question

Quizplus · Accepted Answer

Studies have consistently shown that union workers receive higher wages than nonunion workers. The exact wage difference varies by industry and occupation, but on average, union workers in the U.S. make 21 percent more than nonunion workers. Option A is false because higher wages in the unionized sectors do not necessarily translate into higher wages in nonunion sectors. Option B is also false because there is no clear causal relationship between unionization and inflation. Option D is false because there is a significant wage differential between union and nonunion workers.

Which of the Following Statements Is True for the U