Unions may reduce economic efficiency by:

Question

Quizplus · Accepted Answer

Unions may impose restrictive work rules that limit the flexibility of employers in managing their workforce or operations, leading to reduced economic efficiency. These rules may mandate specific staffing levels, restrict overtime or job duties, or limit productivity-enhancing measures such as job rotation or cross-training. This can lead to higher costs, lower productivity, and reduced competitiveness for unionized firms. Choices A, B, and D are not likely to reduce economic efficiency, and may even enhance it in some cases (e.g. by improving workplace morale or reducing turnover costs).

Unions May Reduce Economic Efficiency By