Suppose You Are a Plumber and Plumbers Are Not Required

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.