Firms with Union Contracts Do a Large Portion of the Painting

question 1

Multiple Choice

Firms with union contracts do a large portion of the painting jobs in the county. If the painters' union wins a 12 percent wage increase, what will most likely happen in the nonunionized part of the painters' labour market?

• A) There will be no change in the nonunionized part of the painters' labour market because these sectors are not connected.
• B) Many nonunion painters will likely find work for a firm with a union contract.
• C) Nonunion painters will also get 12 percent wage increases.
• D) Wage rates in the nonunion sector are likely to fall.

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Definitions:

Ledger Book

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