The introduction of a union into an industry creates a
A)surplus of labor and so raises unemployment.
B)surplus of labor and so reduces unemployment.
C)shortage of labor and so raises unemployment.
D)shortage of labor and so reduces unemployment.

Question

Quizplus · Accepted Answer

Unions typically negotiate for higher wages, which can lead to a surplus of labor as more workers are willing to work at the higher wage, but employers may hire fewer workers, potentially raising unemployment.

The Introduction of a Union into an Industry Creates a