Unions Often Attempt to Obtain Stricter Certification Requirements And/or Longer

question 43

Multiple Choice

Unions often attempt to obtain stricter certification requirements and/or longer apprenticeships. These changes will tend to raise union workers' wages because they

• A) create unnecessary unemployment.
• B) shift the labor supply curve leftward.
• C) decrease the marginal product of labor.
• D) increase the demand for the product.

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Definitions:

Specialization and Trade

An economic concept where individuals or entities focus on the production of specific goods or services to trade for other goods or services, enhancing efficiency and productivity.

Efficient Scale

The level of production at which a firm achieves the lowest long-run average cost, with all inputs utilized most effectively.

Surplus

A situation where the quantity supplied of a good or service exceeds the quantity demanded at the current price, often leading to a decrease in prices.

Balance of Trade

The difference in value between a country's imports and exports over a certain period.