Unions may lower real wages in the nonunion sector because
A. Union firms can easily hire nonunion workers for a lower wage.
B. Workers who are displaced by higher wages in the unionized sector increase the labor supply in the nonunion sector.
C. Nonunion firms adjust wages to avoid the threat of unionization.
D. Nonunion firms have difficulty attracting skilled workers away from the unions.
Answer: B
You might also like to view...
An explanation for how the price of water can be less than the price of diamonds, even though water is more valuable, is that
a. price is a poor guide to value. b. markets for water and diamonds are not competitive. c. price reflects marginal value, not total value. d. diamond production requires more labor, and value is based on labor.
Answer the following statement(s) true (T) or false (F)
1. A negligence standard, with the allowance of contributory negligence, always leads to a socially optimal outcome. 2. Strict liability is the liability that exists when it can be proven beyond a reasonable doubt that the defendant was negligent. 3. Negligence is irrelevant when a strict liability standard is applied. 4. The principle of general average gives a ship's captain an incentive to consider the value of cargo when jettisoning it to prevent a disaster. 5. The doctrine of Respondent Superior contends that an employer is sheltered from torts committed against his employees.
Use the figure below to answer the following question. 
A movement along the supply schedule from point y to point x is associated with
A. diminishing marginal utility. B. diminishing marginal product. C. increasing marginal product. D. increasing marginal utility.
If you are a sole proprietor of a firm, the value of the wage you could have earned elsewhere is
a. an explicit cost. b. an accounting cost. c. an implicit cost. d. not a cost.