6
QuizMultiple Choice

Labor — Quiz

Question 6 • Economics

If union contracts raise wages above competitive levels, what might be one negative outcome?

Answer
A
Companies will move overseas to escape unions and hire cheaper labor.
B
Industries will raise salaries for top-level workers but not entry-level workers.
C
Employees will be content with their status and thus less likely to join unions.
D
Inexperienced workers will lose their jobs to more experienced workers.
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