If a Minimum Wage Is Introduced That Is Above the Equilibrium

question 50

Multiple Choice

If a minimum wage is introduced that is above the equilibrium wage rate,

• A) the supply of labour increases and the supply of labour curve shifts rightward.
• B) job-search activity increases.
• C) unemployment decreases because more workers accept jobs at the higher minimum wage rate.
• D) the quantity of labour demanded increases.
• E) the quantity of labour supplied decreases because of the increase in unemployment.

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Definitions:

Wernicke's Area

A region of the brain important for language comprehension, located in the posterior part of the temporal lobe on the left hemisphere in most people.

Lesion

Any damage or abnormal change in the tissue of an organism, usually caused by disease or trauma.

Aphasia

A language disorder that results from damage to parts of the brain responsible for language, affecting speaking, understanding, reading, and writing.

Frontal Lobes

The part of the brain located at the front of each cerebral hemisphere, responsible for problem solving, decision making, and controlling behavior and emotions.