Answer to Question #62911 in Macroeconomics for Adam

Question

The insider-outsider theory of unemployment says that .. (multiple answers can be correct)
(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.

Answer 1

a, c