question archive If the government were to intervene and set a wage for unskilled labor above the market wage, then we would expect, relative to the market outcome, a) an increase in the number of unskilled jobs available, b) a decrease in the number of unskilled jobs available, c) a decrease in the number of workers wanting unskilled jobs, d) None of the above is correct
If the government were to intervene and set a wage for unskilled labor above the market wage, then we would expect, relative to the market outcome, a) an increase in the number of unskilled jobs available, b) a decrease in the number of unskilled jobs available, c) a decrease in the number of workers wanting unskilled jobs, d) None of the above is correct
Subject:EconomicsPrice:2.88 Bought3
If the government were to intervene and set a wage for unskilled labor above the market wage, then we would expect, relative to the market outcome,
a) an increase in the number of unskilled jobs available,
b) a decrease in the number of unskilled jobs available,
c) a decrease in the number of workers wanting unskilled jobs,
d) None of the above is correct.
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The correct option is b) a decrease in the number of unskilled jobs available.
Explanation:
Here, the government sets wages above the equilibrium wage for unskilled labor. It will encourage people to supply more labor as unskilled labor. At the same time, producers are discouraged from demanding more unskilled labor as they have to pay higher than the equilibrium level. As a result, there will be a reduction in the availability of jobs.
