Consider Two Labour Markets in Which Jobs Are Equally Attractive

Multiple Choice

Consider two labour markets in which jobs are equally attractive in all respects other than the wage rate. All workers are equally able to do either job. Initially, both labour markets are perfectly competitive. If a union organizes workers in one of the markets, then the wage rates will tend to

A) Rise in both markets.
B) Fall in both markets
C) Rise for the union jobs, but remain unchanged for the non-union jobs.
D) Rise for the union jobs and fall for the non-union jobs.