A wage subsidy will: reduce the number of workers employed. increase the unemployment rate, especially among low-skilled workers. reduce the wages received by workers. increase the number of workers employed.

A wage subsidy will: reduce the number of workers employed. increase the unemployment rate, especially among low-skilled workers. reduce the wages received by workers. increase the number of workers employed.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Question

A wage subsidy will:

	reduce the number of workers employed.
	increase the unemployment rate, especially among low-skilled workers.
	reduce the wages received by workers.
	increase the number of workers employed.

Definition Definition State in which an individual is without work, despite actively seeking employment opportunities. The unemployment rate refers to the percentage of the workforce that is currently unemployed. Unemployment is one of the key indicators of the conditions prevailing in an economy. It is therefore considered a barometer that points out the condition of an economy.

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