How do labor unions affect the economy?

Question

A. They decrease demand by opposing low prices.
B. They increase supply by keeping workers healthy.
C. They decrease supply by increasing worker wages.
D. They increase demand by ensuring ethical production.

Answer 1

C. They decrease supply by increasing worker wages.

Labor unions negotiate higher wages and better benefits for workers, which can increase production costs for businesses. This can decrease the supply of goods and services in the economy, leading to potential inflation and higher overall prices for consumers.