Will the imposing of a minimum wage lead to a larger increase in the unemployment rate if the labor supply curve is relatively price elastic or relatively price inelastic?
As the wage rate increases due to the minimum wage law, additional workers will enter the market, looking
for employment. Since jobs aren't available at the minimum wage rate for these workers, their presence
will cause some degree of unemployment. The more elastic the supply curve, the greater the number of
workers entering the market, and therefore the larger the unemployment.
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When demand increases and the demand curve shifts to the right, equilibrium price ________ and equilibrium quantity ________
A) increases; increases B) decreases; decreases C) decreases; increases D) increases; decreases
In the short run, how is the interest rate determined? If the interest rate is less than the equilibrium interest rate, what occurs?
What will be an ideal response?
Explain how does a rise in real income affect aggregate demand?
What will be an ideal response?
When maximizing economic growth is a country's goal it:
A. may work in opposition to the country's happiness in terms of satisfaction gained from leisure. B. increases the correlation to the country's happiness, because more money makes people happier. C. creates a perfect correlation to happiness, if the money is allocated fairly. D. everyone in the economy will be better off if it obtains its goal.