Craft unions typically attempt to increase wage rates by:
A) imposing an above-equilibrium wage rate on employers.
B) increasing the demand for labor.
C) decreasing the supply of labor.
D) forming a bilateral monopoly.

Question

Quizplus · Accepted Answer

Craft unions typically try to increase the wage rates by reducing the supply of labor. They accomplish this by requiring apprenticeship programs, limiting the entry of new members, and encouraging stricter licensure and certification requirements. By reducing the supply of labor, the union can create a shortage, increasing the demand for labor, which will drive up the wages.

Craft Unions Typically Attempt to Increase Wage Rates By