Explain the relationship between the minimum wage and the unemployment rate for teenagers
Increases in the minimum wage lead to increases in the unemployment rate for teenagers. Teenagers are eligible for low-skilled jobs. An increase in the minimum wage will help those teens whose MRP is high enough that they keep their jobs. But workers whose MRP is below the increased minimum wage will lose their jobs.
You might also like to view...
According to this Application, what percentage of parts in the Ford Fiesta came from parts suppliers in the United States and Canada in 2015?
A) 90% B) 70% C) 55% D) 35%
Industrialization and urbanization in the U.S. occurred simultaneously between 1860 and 1910
Indicate whether the statement is true or false
Consider a market that is in equilibrium. If it experiences an increase in supply, what will happen? The supply curve will shift to the:
A. right and the equilibrium price and quantity will rise. B. right and the equilibrium price will decrease and the equilibrium quantity will increase. C. right and the equilibrium price and quantity will fall. D. left and the equilibrium price and quantity will fall.
Which of the following statements is true?
a. Deflation is an increase in the general level of prices. b. The consumer price index (CPI) measures changes in the average prices of consumer goods and services. c. Disinflation is an increase in the rate of inflation. d. Real income is the actual number of dollars received over a period of time. e. The real interest rate equals the nominal rate of interest plus the inflation rate.