Suppose a Study Finds Than Union Wages Are 10% Higher

Multiple Choice

Suppose a study finds than union wages are 10% higher than nonunion wages. This will likely understate the true advantage of working in the union job when

A) the nonunion job has better skilled workers.
B) the union job has poorer working conditions.
C) workers losing union jobs seek out non-union jobs.
D) unemployment is high.