Question

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 _______ unemployment rate compared to region B holding all esle constant.a. a lowerb. a higherc. about the same

Answer 1

Answer:

higher unemployment rate

Explanation:

The economic region, A, where there is the presence of strict union protection laws, is most likely to experience increase unemployment rate compared to region B where there is the absence of strict union protection laws.

Unions most times favor those who are currently employed as opposed to those who are searching for jobs. They try to reduce wage inequality between low and middle wage workers and high- wage workers, this most times leads to increase in wages above the equilibrium level. This further result to the decline of amount of labor required hence leading to unemployment.

Answer 2

Answer:

The correct answer is letter "B": a higher.

Explanation:

Labor unions are organized groups of employees of a determined company that gather to negotiate labor benefits with employers. The benefits discussed are typically related to salaries, health care, and work conditions. The problem comes when the overall economy of the region where the country operates fails. Unions are likely to be strict on giving up part of their salaries to compensate for the possible losses of the firm pushing the company to massively lay-off workers.

Thus, if region A has strict union protection laws while region B does not, it is more possible that the rate of unemployment is higher in region B.