Question

Explain the impact of each of the following events on the domestic market for union labor.

a. Union-produced TV and radio commercials convince consumers to buy domestically manufactured clothing instead of imported clothing.

b. The union sponsors periodic training programs that instruct union laborers about the most efficient use of machinery and tools.

Short answer

(a) An improvement in labour productivity tends to raise demand for skilled workers.

(b) The union labour market will become more productive.

Step-by-step solution

 Introductionpart (a)

(a) If customers are persuaded to buy goods and services produced in the United States, demand for labour in the labour market will rise.

• Domestically produced commodities will be purchased by consumers, resulting in increased market demand.

 Explanation

• A rise in demand for domestically produced goods and services will result in a rise in labour demand.
• As a result, labour demand will increase.

Introductionpart (b)

(b) Laborer productivity would be increased via technological training programmes.

Step 4  Explanation

• An improvement in labour productivity tends to raise demand for skilled workers.
• The union labour market will become more productive.