Which phrase finishes this statement best? The net effect of a union increasing wages
A)Is to lower non-union wages by an offsetting amount so national income is not changed
B)Is to increase wages in both union and non-union sectors
C)Is to misallocate labor toward non-union work unless unionization enhances union worker productivity by its actions
D)Is that no one gains in the end since union shops can not compete and do not survive

Question

Quizplus · Accepted Answer

Increasing union wages can lead to a misallocation of labor as workers may move towards non-union jobs unless the unionization process also increases productivity, which can justify the higher wages.

Which Phrase Finishes This Statement Best? the Net Effect of a Union