Which of the following statements about featherbedding is CORRECT?

Question

Quizplus · Accepted Answer

Featherbedding, which involves unions pushing for the employment of more workers than necessary or the limitation of work output, can lead to increased production costs as firms have to pay for labor that may not be needed, potentially resulting in higher prices for consumers. Additionally, in response to increased labor costs, firms might reduce the quantity of labor they demand, leading to a decrease in employment opportunities. Over time, these practices can result in inefficiencies that might harm the economy by leading to lower wages and smaller employment as firms seek to cut costs or automate processes to maintain profitability.

Which of the Following Statements About Featherbedding Is CORRECT