A minimum wage in the formal sector will likely
a. reduce the number of formal-sector workers
b. increase labor supply and lower wages in the informal sector
c. encourage rural-urban migration
d. lead to increased mechanization in the formal sector
e. all of the above
E
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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?
What would happen in the market for bread if its demand increased but the price was NOT allowed to change?
A) There would be a surplus of bread. B) There would be a shortage of bread. C) The supply of bread would increase. D) The supply of bread would decrease.
Which of the following could not cause an increase in both the equilibrium price and quantity of a good exchanged? a. Increased input prices
b. Decreased incomes for an inferior good. c. An increase in the price of a substitute good. d. Increased tastes for the good.
The change in total output that results from one additional unit of input is the:
a) Marginal physical product. b) Input price. c) Average product of the input. d) Unit cost of the input.