What negative impacts can unions have on industries and the economy?
I. They can initiate worker strikes and sit-ins which stall production.
II. By limiting the supply of labor in one industry they can cause an increased supply of labor in other industries, which causes lower wages in those industries.
III. They can limit firms to hiring only unionized workers, which could stop firms from hiring the labor with the most appropriate skills.

Question

Quizplus · Accepted Answer

Unions can cause production delays through strikes (I), affect labor supply and wages in other industries (II), and restrict hiring to unionized workers, potentially limiting skill-appropriate hires (III).

What Negative Impacts Can Unions Have on Industries and the Economy