If the Government Were to Intervene and Set a Wage

question 39

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)None of the above is correct.

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Definitions:

Prisoner's Dilemma

A scenario in game theory showing why two individuals might not cooperate, even if it is in their best interest to do so.

Reciprocity

A social principle stating that if someone does something for you, you should do something in return.

Competing

Competing involves being in a rivalry or contest with others for an objective or prize.

Cost-Of-Living Raises

Salary increases given to employees to offset the effects of inflation on their purchasing power.