Consider an economy with one labor market for manufacturing workers a) if manufacturing workers formed a union what impact would you predict on the wages and employment in manufacturing sector? (use graph to explain) b) Why does collective bargaining by unions have the same general effect on unemployment as a minimum wage? llustrate your answer with the help of the diagram you drew on part la)
Consider an economy with one labor market for manufacturing workers a) if manufacturing workers formed a union what impact would you predict on the wages and employment in manufacturing sector? (use graph to explain) b) Why does collective bargaining by unions have the same general effect on unemployment as a minimum wage? llustrate your answer with the help of the diagram you drew on part la)
Chapter1: Making Economics Decisions
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Transcribed Image Text:Consider an economy with one labor market for manufacturing workers
a) if manufacturing workers formed a union what impact would you predict on the
wages and employment in manufacturing sector? (use graph to explain)
b) Why does collective bargaining by unions have the same general effect on
unemployment as a minimum wage? llustrate your answer with the help of the
diagram you drew on part la)
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