If a union limits its size to the number of employed members it had when the union was first formed, over time there will be
A) an increase in the supply of union labor.
B) falling wages as demand for workers increases.
C) rising wages as demand for workers increases and the supply increases proportionally.
D) rising wages as demand for workers increases but some potential workers are denied a place in the union.

Question

Quizplus · Accepted Answer

If a union limits its size to its original membership, there will be rising wages as demand for workers increases. However, potential workers who are denied membership in the union will not benefit from these wage increases. Therefore, rising wages will be accompanied by potential wage discrimination against non-union workers.

If a Union Limits Its Size to the Number of Employed