What Negative Impacts Can Unions Have on Industries and the Economy

question 137

Multiple Choice

What negative impacts can unions have on industries and the economy?

• A) They can initiate worker strikes and sit-ins which stall production.
• B) By limiting the supply of labor in one industry they can cause an increased supply of labor in other industries, which causes lower wages in those industries.
• C) They can limit firms to hiring only unionized workers, which could stop firms from hiring the labor with the most appropriate skills.
• D) All of the answers are correct.

---

Definitions:

Elastic Demand

Elastic demand indicates that the quantity demanded of a good or service significantly changes in response to a change in price.

Necessity

Essential goods or services required for basic living and welfare of individuals.

Luxury

High-quality goods or services that are not essential but are highly desired and associated with wealth or indulgence.

Substitutes

Goods or services that can be used in place of each other to satisfy consumer needs or desires.