The effect of unions tends to ____ output in the union sector and ____ output in the non-union sector.

Question

Quizplus · Accepted Answer

Unions typically negotiate for higher wages and better working conditions for their members, which can increase costs for firms and therefore decrease output in the union sector. To offset these higher costs, firms may increase output in the non-union sector where labor costs are lower, resulting in an increase in output in the non-union sector.

The Effect of Unions Tends to ____ Output in the Union