Which of the following is most likely to occur if a union can transfer profits from a unionized employer to union workers?
A) The investment expenditures of the unionized employer will tend to fall.
B) Employment in the nonunion sector will tend to fall.
C) The costs of the unionized employer will tend to fall.
D) The output of the unionized employer will tend to increase.

Question

Quizplus · Accepted Answer

If a union can transfer profits from a unionized employer to union workers, the employer's costs will increase, leading to reduced investment expenditures as the employer seeks to maintain profitability.

Which of the Following Is Most Likely to Occur If