Suppose that telemarketers are not unionized. If they unionize, then the supply of labor in other sectors of the economy will
Select one:
a. decrease, raising wages in industries that are not unionized.
b. decrease, reducing wages in industries that are not unionized.
c. increase, raising wages in industries that are not unionized.
d. increase, reducing wages in industries that are not unionized.
Answer : Suppose the telemarketer are not unionised. If they unionised than supply of labour in other sector of the economy will increasing , reducing wages in industries that are not unionised. When unionisation has been created in particular sector than labour supply has been shifted to the other sector of an economy. The sector has more supply than demand of labour which resulted decline in wages. The union should provide better working condition and environment to an existing employee as well as nominal amount of wages.
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