Answer to Question #62855 in Macroeconomics for Gian

Question #62855
The insider-outsider theory of unemployment says that ...(several answers possible) (a) trade unions do not internalize sufficiently the well-being of the unemployed. (b) trade unions can be a cause for involuntary unemployment. (c) trade unions tend to increase wages above the competitive level. (d) the position of trade unions should be bolstered in order to lower unemployment.
1
Expert's answer
2016-10-25T06:58:09-0400
(b), (c)
Monopoly power of insiders allows them to overestimate wage above the equilibrium level. As a result, the economy appears unemployed contingent of which is formed by outsiders of various firms.

Need a fast expert's response?

Submit order

and get a quick answer at the best price

for any assignment or question with DETAILED EXPLANATIONS!

Comments

No comments. Be first!

Leave a comment

Ask Your question

LATEST TUTORIALS
New on Blog
APPROVED BY CLIENTS
paypal