Figure 9-1 This Figure Shows the Effect of a Minimum-Wage Law

question 18

Multiple Choice

Figure 9-1
This figure shows the effect of a minimum-wage law.
-Refer to Figure 9-1. If there was a minimum wage of $4 and then the government instituted a minimum wage of $5, what would happen to employment in this market?

• A) Unemployment would be unchanged.
• B) Unemployment would drop by 10.
• C) Unemployment would rise by 10.
• D) Unemployment would rise by 20.

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Definitions:

Dollar

The primary currency unit used in the United States, marked by the symbol $ and known as a standard measurement in international financial transactions.

Token Woman

A woman in a predominantly male environment included to prevent criticism and give the appearance of gender equality.

Stereotyped

Having fixed, oversimplified, and generalized beliefs about a particular group of people or things.

Isolated

Being separated from others; in a situation where something or someone is not in contact or connected with other entities.