Which of the Following Is Likely to Happen If Some

question 91

Multiple Choice

Which of the following is likely to happen if some workers form a union in a competitive labor market and negotiate a higher wage for themselves?

• A)Competition will force the wage rate in the nonunion sector to increase to the level of the union wage.
• B)The marginal product of labor will increase in the unionized sector.
• C)Workers will move from the union to the nonunion sector over time.
• D)Employment will increase in the union sector because workers will be attracted by the higher union wage.
• E)Total output produced by labor will decrease substantially.