Consider two economic regions, region A and region B. If region A has strict union protection laws present, while region B lacks union protection laws, we can expect that region A will have a higher about the same a lower unemployment rate compared to region B holding all esle constant. a. a lower

b. a higher

c. about the same

Question

Business

Hailey Pugh

30 May, 11:55

Consider two economic regions, region A and region B. If region A has strict union protection laws present, while region B lacks union protection laws, we can expect that region A will have a higher about the same a lower unemployment rate compared to region B holding all esle constant. a. a lower

b. a higher

c. about the same

+5

Answers (1)

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Elianna Reese · Answer 1

B. A higher unemployment rate

Explanation:

High union memership can increase unemployment in two ways:

Creating a barrier of entry because non-unionized workers can be barred from getting employed in industries with high union membership. Pushing salaries above the marginal productivity of labor, especially the minimum wage, causing firms to hire less because hiring becomes more costly.