Which of the following is a policy tool that can be used to address the issue of foreign labor crowding a finite job market?

• A. Implementing quotas or restrictions on the number of foreign workers allowed
• B. Eliminating minimum wage laws
• C. Increasing subsidies for imported goods
• D. Reducing domestic education funding

Answer: (A)

Verified step by step guidance

1. Step 1: Understand the problem context — the issue is foreign labor crowding a finite job market, which means there are more workers than available jobs, potentially leading to unemployment or wage suppression for domestic workers.
2. Step 2: Identify policy tools that directly affect the supply of foreign labor in the job market. This involves measures that can limit or control the number of foreign workers entering or working in the country.
3. Step 3: Evaluate each option: Eliminating minimum wage laws affects wage levels but does not directly limit foreign labor supply; increasing subsidies for imported goods affects trade, not labor supply; reducing domestic education funding impacts domestic labor quality but not foreign labor numbers.
4. Step 4: Recognize that implementing quotas or restrictions on the number of foreign workers directly limits the supply of foreign labor, which can reduce crowding in the job market.
5. Step 5: Conclude that the policy tool addressing the issue is implementing quotas or restrictions on foreign workers, as it directly controls the number of foreign laborers competing for jobs.