If Unions Are Successful at Restricting the Supply of Unionized

question 178

Multiple Choice

If unions are successful at restricting the supply of unionized workers and increasing the demand for them

• A) no wage differential will exist between union workers and nonunion workers.
• B) the wage differential between union workers and nonunion workers will increase.
• C) the wage differential between union workers and nonunion workers will decrease.
• D) consumers will buy the union label.

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Definitions:

Trade Restrictions

Regulations and policies that governments impose to control the free exchange or movement of goods between countries.

Embargo

Total ban on importing specific products or a total halt to trading with a particular country.

Importing Sugar

The process of buying or bringing in sugar from foreign countries to meet domestic demand or consumption.

Developing Nations

Countries with a lower level of material well-being and economic development compared to industrialized nations.