Consider the accompanying figure representing the labor market below. Suppose the government passes a minimum wage requiring employers to pay at least $8.00 per hour.
Prior to the imposition of the minimum wage, worker surplus is ________ per day, and after the imposition of the minimum wage, worker surplus is ________ per day.
A. $9,000; $5,000
B. $18,000; $2,000
C. $18,000; $14,000
D. $9,000; $1,000
Answer: C
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An Indian student paid $16,000 for a course in a university in the U.S. This transaction will lead to a(n) ________
A) decrease in the GDP of India B) increase in the GDP of India C) increase in the GDP of U.S. D) decrease in the GDP of U.S.
If Jennifer didn't have class in the evening, she would save the $4 campus parking fee and spend four hours at work where she earns $10 per hour. The opportunity cost of attending class is: a. $0
b. $4. c. $40. d. $44.
Which of the following measures includes the effects of taxes? a. Net national product
b. Gross national product. c. National income. d. Personal income.
Suppose a country experiences capital flight. Of the demand for loanable funds and the supply of currency in the market for foreign-currency exchange, which shifts right?
a. only the demand for loanable funds b. only the supply of its currency in the market for foreign-currency exchange c. both curves shift right d. neither curve shifts right