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

Question

Quizplus · Accepted Answer

Labor unions support the minimum wage because it puts upward pressure on all wages, including union wages, by setting a basic floor for wage rates.

Labor Unions Support the Minimum Wage Because