What is a possible effect of unions?
A) Unions decrease the natural rate of unemployment.
B) Unions decrease the wages of workers in the union.
C) Unions raise the profits of firms they work for.
D) Unions cause wages of nonunionized workers to fall.

Question

Quizplus · Accepted Answer

Unions negotiate higher wages and better working conditions for their members, which can lead to employers compensating for these increased costs by offering lower wages to nonunionized workers or reducing hiring, potentially causing wages in the nonunion sector to fall.

What Is a Possible Effect of Unions