The introduction of a union into an industry
A)creates a surplus of labor and so raises unemployment.
B)creates a surplus of labor and so reduces unemployment.
C)creates a shortage of labor and so raises unemployment.
D)creates a shortage of labor and so reduces unemployment.

Question

Quizplus · Accepted Answer

The introduction of a union typically leads to higher wages, which can create a surplus of labor as more workers are willing to work at the higher wage, but employers may hire fewer workers, potentially raising unemployment.

The Introduction of a Union into an Industry