Barriers to entry into a craft union cause the wage to _______ and the quantity of labor employed to ________.

Question

Quizplus · Accepted Answer

Barriers to entry, such as apprenticeship requirements or restrictive membership policies, can limit the supply of workers in a craft union, leading to an increase in wage rates. The limited supply of workers also reduces the quantity of labor employed, which decreases as firm's must pay higher wages for the same amount of work. Therefore, the correct answer is B, an increase in wage rates and a decrease in the quantity of labor employed.

Barriers to Entry into a Craft Union Cause the Wage