When workers form a labour union, the result will likely be which of the following?
(i) an increased demand for labour
(ii) a surplus of labour
(iii) increased unemployment
A)(i) and (ii)
B)(ii) and (iii)
C)(i) and (iii)
D)(i), (ii) and (iii)

Question

Quizplus · Accepted Answer

When workers form a labor union, they often negotiate for higher wages or better working conditions. While this can lead to a surplus of labor if wages are set above the market equilibrium, it can also lead to increased unemployment as employers may hire fewer workers due to the higher cost of labor. There's no direct mechanism by which forming a union would increase the demand for labor.

When Workers Form a Labour Union, the Result Will Likely