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monitta
3 years ago
8

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
Business
1 answer:
Stolb23 [73]3 years ago
4 0

Answer:

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.

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