Suppose You Are a Plumber and Plumbers Are Not Required

question 104

Multiple Choice

Suppose you are a plumber and plumbers are not required to be licensed. A government official proposes to license plumbers, with practicing plumbers automatically receiving a license. Under the proposal, new plumbers would have to pass a test in order to receive a license. If the proposed law passes, you can expect

• A)plumbing errors to become a thing of the past.
• B)much additional competition as new entry occurs.
• C)increased respect for your profession.
• D)greater market power and less competition.
• E)lower prices for plumbing services.

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