Suppose That the Equilibrium Wage in the Low-Skilled Labor Market

question 194

Multiple Choice

Suppose that the equilibrium wage in the low-skilled labor market is $9.25. Further, suppose the federal government raises the minimum wage to $9.00 an hour from its present level of $8.15. The government's action of increasing the minimum wage will result in

• A) a decrease in unemployment.
• B) an increase in unemployment.
• C) a shortage of low-skilled labor.
• D) neither a shortage nor a surplus of labor in the low-skilled labor market.

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Definitions:

Ball Screw Block

A component of a ball screw system that moves linearly along the screw, converting rotary motion into precise linear motion.

Shift Finger Transversely

Refers to the movement or positioning of a shift finger (a component in gear selection mechanisms) across a lateral axis to engage different gears.

Inertia Brake

On an automated standard transmission, this solenoid actuated brake helps stop the countershafts on initial engagements when the clutch is either out of adjustment or defective.

Input Shaft Speed Sensor

A sensor used to monitor the speed at which the input shaft is spinning in a vehicle's transmission, aiding in shift timing and control strategies.