Licensing laws
A)are illegal in most industries
B)serve to increase wage rates in some industries
C)lead to higher employment levels in some industries
D)reduce the quality of labor in a particular market
E)are rarely effective at increasing wage rates

Question

Quizplus · Accepted Answer

Licensing laws can serve to increase wage rates in certain industries (such as medicine or law) by limiting the supply of workers who are eligible to perform certain tasks. However, they can also create barriers to entry for new workers, reduce competition, and in some cases, lead to a decrease in the quality of labor.

Licensing Laws