If the Government Wished to Institute a Set-Aside Program to Support

question 55

Multiple Choice

If the government wished to institute a set-aside program to support the price at P₁ rather than P₂ in Figure 29.1,by how much would market output be reduced?

• A)Q₅ to Q_1.
• B)Q₃ to Q_1.
• C)Q₃ to Q_2.

---

Definitions:

Industrial Union

Labor union whose members are linked by their work in a particular industry.

Craft Union

A labor union of workers who practice the same craft or trade.

Apprenticeships

Training programs that combine on-the-job training with classroom instruction, typically in a trade or profession, under the guidance of skilled workers.

Unions

Organizations that represent the collective interests of workers in negotiations with employers about wages, working conditions, benefits, and other aspects of employment.