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)an increase in the number of businesses using unskilled workers.

Question

Quizplus · Accepted Answer

Setting a wage for unskilled labor above the market wage would likely lead to a decrease in the number of unskilled jobs available. Employers may not be willing or able to pay the higher wage to all their current employees, leading to layoffs or reduced hiring.

If the Government Were to Intervene and Set a Wage