Empirical studies suggest that the efficiency loss associated with the misallocation of labor caused by the union wage advantage is
A) $6 billion per year.
B) about 2 percent of domestic output.
C) less than one-half of 1 percent of domestic output.
D) about 4 percent of domestic output.

Question

Quizplus · Accepted Answer

Empirical studies suggest that the efficiency loss associated with the misallocation of labor caused by the union wage advantage is less than one-half of 1 percent of domestic output. This indicates that the negative impact of union wage advantage on the allocation of resources is relatively small.

Empirical Studies Suggest That the Efficiency Loss Associated with the Misallocation