If the Government Were to Intervene and Set a Wage

question 55

Multiple Choice

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.

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Definitions:

Binding Contract

A legal agreement between parties that is enforceable by law, with specified obligations that must be fulfilled by all involved parties.

Acceptance by Silence

A legal principle where silence or inaction can be interpreted as acceptance of an offer under certain circumstances, typically when past behavior has established such a pattern.

Option Contract

A contract granting one the right, but not the obligation, to buy or sell an asset at a predetermined price within a specific timeframe.

Implied-in-Fact Contract

An implied-in-fact contract is an agreement that is not expressed in words but is inferred from the actions or conduct of the parties involved.