-The Figure Above Shows a Labor Market

question 204

Multiple Choice

-The figure above shows a labor market. If there is a monopsony in this labor market, then increasing the minimum wage from $3 per hour to $5 per hour

• A) will increase the quantity of labor employed.
• B) will leave unchanged the quantity of labor employed.
• C) will decrease the quantity of labor employed.
• D) could increase, decrease, or leave unchanged the quantity of labor employed.

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Definitions:

Thoughts

Mental processes or ideas that occur in the mind, ranging from conscious reasoning to subconscious beliefs.

Conditioned Stimulus

A formerly neutral stimulus that, following its pairing with an unconditioned stimulus, ends up provoking a conditioned response.

Unconditioned Response

A natural, automatic reaction to a stimulus that occurs without prior learning or conditioning.

Conditioned Stimulus

A previously neutral stimulus that, after becoming associated with an unconditioned stimulus, is able to elicit a conditioned response on its own.