By raising their wages, unions typically
A) increase total productivity, which must rise proportionally with the wage rate.
B) encourage employers to find substitutes for union labor.
C) raise the wages of nonunion workers as well.
D) lower the prices consumers pay for the products produced by union firms.

Question

Quizplus · Accepted Answer

By raising wages, unions can make union labor more expensive, prompting employers to seek cheaper alternatives or substitutes for union labor to maintain cost efficiency.

By Raising Their Wages, Unions Typically