Which of the following statements is TRUE?
I. Union members earn higher wages because unions restrict the supply of labor.
II. Unions are similar to cartels in that they restrict competition among workers.
III. Countries with more union members earn more than countries with fewer union members.

Question

Quizplus · Accepted Answer

Statement I is true because when unions negotiate with employers, they often lobby for higher wages for their members, which can restrict the supply of labor in certain sectors. Statement II is also true because unions restrict competition among workers by negotiating collective bargaining agreements that set wages and benefits for all members. However, statement III is false because there is no clear correlation between the number of union members in a country and the overall wages earned by workers in that country.

Which of the Following Statements Is TRUE