Which of the following is correct?
A)In unionized industries,wages are below the level that would prevail in competitive markets.
B)The introduction of a union in an industry increases the quantity of labor demanded in that industry,causes some workers in that industry to be unemployed,and increases wages in the rest of the economy.
C)Critics argue that the allocation of labor resulting from unions is both inefficient and inequitable.
D)All of the above are correct.

Question

Quizplus · Accepted Answer

Option A is incorrect because wages in unionized industries are typically higher than in non-unionized industries. Option B is also incorrect because unions can cause a reduction in the quantity of labor demanded in an industry, as well as lead to wage increases within the industry rather than the rest of the economy. Option C is correct as it highlights a common argument against unions, suggesting that the way in which they allocate labor is inefficient and unfair. Option D is incorrect because options A and B are incorrect.

Which of the Following Is Correct