When a union bargains successfully with employers, in that industry,
A)both wages and unemployment increase.
B)wages increase and unemployment decreases.
C)wages decrease and unemployment increases.
D)both wages and unemployment decrease.

Question

Quizplus · Accepted Answer

When a union successfully bargains with employers, it typically results in higher wages for its members. However, higher wages can lead to higher labor costs for employers. In some cases, to offset these increased costs, employers may hire fewer workers or reduce hours, potentially leading to an increase in unemployment within that industry.

When a Union Bargains Successfully with Employers, in That Industry