When a union successfully raises the wages of its members, it will also
A) increase total productivity, which must rise in proportion to the wage rate.
B) encourage employers to find a substitute for the union labor.
C) raise the wages of nonunion workers.
D) increase the share of income allocated to labor as opposed to capital.

Question

Quizplus · Accepted Answer

When a union raises wages, employers may seek substitutes for union labor to control costs, such as automation or outsourcing.

When a Union Successfully Raises the Wages of Its Members