Final answer:
Occupational licenses are government-issued certifications that demonstrate a worker's completion of specific education or testing requirements. Some professions, such as doctors and lawyers, require these licenses. However, not everyone can obtain them, which can create barriers to entry in certain industries and limit competition.
Step-by-step explanation:
Occupational licenses are required for certain professions and are typically issued by government agencies. They demonstrate that a worker has completed a specific education or passed a relevant test. Some examples of professions that require occupational licenses include doctors, teachers, engineers, accountants, and lawyers. Additionally, many states require licenses for occupations such as barber, massage therapist, insurance agent, and real estate broker.
However, not everyone can obtain an occupational license. Some individuals may be unable to meet the education or testing requirements necessary for obtaining a license. This can create barriers to entry in certain industries, making it more difficult for new entrants to compete with established professionals. The government justifies this restriction by arguing that the additional information provided by licenses outweighs the negative effect on competition.