If an increase in the government-imposed minimum wage pushes the price (wage) of unskilled labor above market equilibrium, which of the following will most likely occur in the unskilled labor market?
A. An increase in quantity of unskilled labor demanded.
B. A decrease in the quantity of unskilled labor supplied.
C. A shortage of unskilled labor.
D. A surplus of unskilled labor (unemployment).
Answer: D
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A) could be caused by changes in the spending decisions of the households, businesses, the government, and foreigners. B) are very uncommon. C) are unlikely to change quickly in response to economic events. D) are primarily based on changes in firms' abilities to produce products. E) are not affected by changes in government policies.
What quantity of output and price do they try to set, when a group of oligopoly firms form a cartel? Will there be any changes in the price and quantity supplied if the cartel gets broken down?
A WTO member country must offer all other member countries ________ that are offered to any single member country
a. common-market guarantees b. the same trade concessions c. the same basket of commodities d. import substitutions
Along the portion of the consumption function that lies above the 45-degree line, saving is
A. equal to consumption. B. positive. C. negative. D. equal to zero.