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When Unions Raise Wages in Some Sectors of the Economy

Question 117

Multiple Choice

When unions raise wages in some sectors of the economy, what happens to the supply of labour in other sectors of the economy?


A) It decreases, raising wages in industries that are not unionized.
B) It decreases, reducing wages in industries that are not unionized.
C) It increases, raising wages in industries that are not unionized.
D) It increases, reducing wages in industries that are not unionized.

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