Craft unions have typically been most effective in raising wage rates by
A) legislating a minimum wage rate above the competitive equilibrium level.
B) increasing the demand for labor of union members.
C) decreasing the supply of labor through licensing and training requirements.
D) organizing all of the employees in a factory or industry and demanding wage hikes.

Question

Quizplus · Accepted Answer

Craft unions often raise wage rates by decreasing the supply of labor through mechanisms like licensing and training requirements, which limit the number of qualified workers and increase bargaining power.

Craft Unions Have Typically Been Most Effective in Raising Wage