Suppose a Minimum Wage of $15 an Hour Is in Force,resulting

question 39

Multiple Choice

Suppose a minimum wage of $15 an hour is in force,resulting in unemployment of 10 million hours.Then the demand for labour increases such that supply and demand curves intersect at a wage rate of $17 per hour.What will happen to the equilibrium wage rate and employment?

• A)The wage rate is $17 an hour and there will be no unemployment.
• B)The wage rate is $17 an hour and there will be a surplus of labour.
• C)The wage rate is $15 an hour and there will be a surplus of labour.
• D)The wage rate is $15 an hour and there will be no unemployment.
• E)The wage rate is $15 an hour and there will be unemployment.

Analyze the impact of product price changes on labor demand in monopsony and competitive markets.

Identify circumstances under which workers do and do not earn economic rent in different market structures.

Recognize how the introduction of multiple employers affects wages and employment in previously monopsonistic markets.

Determine the profit-maximizing level of labor purchase in monopsony and competitive markets.

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Definitions:

Unfavourable Attitudes

Negative perceptions or feelings towards a person, group, or concept, which can influence behavior and judgement.

Derogatory Comments

Negative or critical remarks about someone, often insulting or demeaning in nature.

Prejudice

A preconceived opinion that is not based on reason or actual experience; often directed against people or ideas.

Engineering Students

Individuals enrolled in an engineering program at a higher education institution, focusing on the study of applied sciences and technology.