Which of the Following Would Cause the Demand for Plumbers

question 43

Multiple Choice

Which of the following would cause the demand for plumbers to decrease?

• A) an increase in the productivity of plumbers
• B) a decline in the construction of housing
• C) a law that mandated higher wages for plumbers
• D) an increase in the number of plumbers who belong to a union

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Definitions:

Market Failure

A situation where the allocation of goods and services by a free market is not efficient, often leading to negative externalities, underproduction, or overproduction.

Wasteful

Referring to the use or allocation of resources in an inefficient manner, leading to unnecessary loss or expenditure.

Interstate Highway

A network of controlled-access highways that form part of the National Highway System in the United States, facilitating interstate and long-distance travel.

Nonexcludability

A characteristic of public goods where it is impossible or highly costly to exclude individuals from consuming the good.