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The Allocative Efficiency Loss Associated with Unions Arises Because

Question 36

Multiple Choice

The allocative efficiency loss associated with unions arises because:


A) job losers in the union sector take away jobs from more productive workers in the nonunion sector
B) the value of lost output in the union sector is greater than the value of any additional output in the nonunion sector
C) the union wage rises above the value of marginal product while the nonunion wage falls below it
D) job losers in the union sector are unqualified to work in the nonunion sector,so society loses their potential output

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