Figure 9-2 -Refer to Figure 9-2. If the Minimum Wage Rose from Wage

question 126

Multiple Choice

Figure 9-2
-Refer to Figure 9-2. If the minimum wage rose from $5 to $7, what would happen to unemployment?

• A) It would rise by 40.
• B) It would rise by 20.
• C) It would fall by 20.
• D) It would fall by 40.

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Definitions:

Shut Down

Cessation of a firm’s operations as output falls to zero.

Break-even Point

The level of production or sales at which total revenues equal total expenses, resulting in neither profit nor loss.

Marginal Revenue

The extra revenue generated through the sale of an additional unit of a product or service.

Marginal Cost

The additional total cost incurred from manufacturing an additional unit of a product or service.