When a union bargains successfully with an employer, what happens to unemployment and wages in that industry?
A) unemployment and wages increase
B) unemployment and wages decrease
C) unemployment decreases and wages increase
D) unemployment increases and wages decrease

Question

Quizplus · Accepted Answer

When a union successfully bargains with an employer, it typically results in higher wages for the workers represented by the union. However, the increase in labor costs can lead to higher unemployment in that industry, as the employer may hire fewer workers or reduce hours to offset the increased wage expenses.

When a Union Bargains Successfully with an Employer, What Happens