The introduction of a union into an industry
A)raises wages and employment in that industry.
B)lowers wages and employment in that industry.
C)lowers wages and raises employment in that industry.
D)raises wages and lowers employment in that industry.

Question

Quizplus · Accepted Answer

The introduction of a union into an industry typically leads to higher wages because unions negotiate on behalf of their members for better pay and benefits. However, this often comes at the cost of reduced employment, as employers may need to cut jobs or reduce hiring in order to afford the higher wages. Therefore, the best choice is D, which reflects the trade-off between higher wages and lower employment that typically occurs when a union is introduced.

The Introduction of a Union into an Industry