When a Union Successfully Raises the Wages of Its Members

question 9

Multiple Choice

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.

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