Some states require that unions represent non-union workers who don't pay dues in their collective bargaining negotiations

Explain using economic logic how this might result in fewer unions than would otherwise be the case if these types of laws did not exist.

This is a classic example of the free-rider problem. Non-payers are able to enjoy the benefits that are created by payers. In this case the payers are the union members. Knowing this many workers may be less inclined to vote to have a union represent them in the first place.

Economics

You might also like to view...

When you deposit $50 in currency at Old National Bank

A) its assets increase by less than $50 because of reserve requirements. B) its reserves increase by less than $50 because of reserve requirements. C) its liabilities increase by $50. D) its liabilities decrease by $50.

Economics

Economic profit is always

A) greater than accounting profit. B) equal to accounting profit. C) less than accounting profit. D) equally likely to be either greater or less than accounting profit.

Economics