Some economists claim that unions reduce economic efficiency by
A) providing a voice mechanism for workers.
B) insisting that promotions be based on ability rather than seniority.
C) imposing restrictions on the kinds of jobs workers may perform.
D) increasing worker turnover.

Question

Quizplus · Accepted Answer

Unions may impose restrictions on the kinds of jobs workers may perform, which can limit flexibility and reduce economic efficiency. However, providing a voice mechanism for workers (A) can lead to better communication and cooperation, promoting efficiency. Insisting that promotions be based on ability rather than seniority (B) can also improve productivity and efficiency. Worker turnover (D) may be influenced by unions, but it is not necessarily a direct result of unionization and its impact on economic efficiency may be debated.

Some Economists Claim That Unions Reduce Economic Efficiency by