Which Phrase Finishes This Statement Best? the Net Effect of a Union

question 1

Multiple Choice

Which phrase finishes this statement best? The net effect of a union increasing wages

• A)is to lower non-union wages by an offsetting amount so national income is not changed.
• B)is to increase wages in both union and non-union sectors.
• C)is to misallocate labor toward non-union work unless unionization enhances union worker productivity by its actions.
• D)is that no one gains in the end since union shops cannot compete and do not survive.

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Definitions:

Formal Agreement

A legally binding contract or understanding reached between parties, documented in written form.

Legally Binding

Agreements or contracts that are enforceable by law, requiring parties to fulfill their obligations.

Mediator

A neutral third party who attempts to assist parties in a negotiation to find a resolution or come to an agreement using rational arguments and persuasion.

Land Dispute

A disagreement over the ownership, boundaries, or use of a piece of land.