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Which of the following are possible methods that unions use in order to increase

ID: 1113755 • Letter: W

Question

Which of the following are possible methods that unions use in order to increase union salaries?

Decrease the numbers of workers in the field.

Increase the demand for the product the union workers are making.

Get law passed that requires a person to get a license to do the job.

Raise tariffs on the importation of products being produced by union workers.

All of the above are possible ways to increase union salaries.

Decrease the numbers of workers in the field.

Increase the demand for the product the union workers are making.

Get law passed that requires a person to get a license to do the job.

Raise tariffs on the importation of products being produced by union workers.

All of the above are possible ways to increase union salaries.

Explanation / Answer

Option 1 is correct

Unions can decrease the numbers of workers in the field (shift the labour supply curve to the left, less labour would be supplied for a given wage rate), this would lead to an increase in union salaries.

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