If the Wage for Unskilled Labor Were Fixed Above the Current

question 25

Multiple Choice

If the wage for unskilled labor were fixed above the current wage,then we would expect

• 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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Definitions:

Land-Rent Taxes

Taxes imposed on the economic rent of land, aiming to capture the value generated by the inherent properties of the land itself without discouraging investment or development.

Economic Efficiency

A condition in which a market or an economy utilizes resources in a way that maximizes the production of goods and services.

Supply-Elasticity Differences

Variations in how sensitive the quantity supplied of a good is to changes in its price across different markets or goods.

Productivity Differences

Variations in the efficiency of production processes or workers, impacting the output generated from a set amount of inputs.