An increase in the percentage of the labor force that is unionized:
A)will cause average wages for all workers to rise because strike threats promote wage increases.
B)does not imply higher average wages for union members.
C)will cause average wages for all workers to rise because union labor is more productive.
D)will cause average wages for all workers to rise because profit levels are lowered to increase wages.

Question

Quizplus · Accepted Answer

While an increase in unionization rates may lead to higher wages for union members, it does not necessarily lead to higher average wages for all workers. Factors such as supply and demand for labor, productivity, and profitability of firms also play a role in determining wages.

An Increase in the Percentage of the Labor Force That