FIGURE 5- 1 -Refer to Figure 5- 1. If the Diagram Applies to Diagram

question 101

Multiple Choice

FIGURE 5- 1
-Refer to Figure 5- 1. If the diagram applies to the labour market, and P3 represents a legislated minimum wage,

• A) the labour market is in disequilibrium.
• B) the amount of labour employed will rise from quantity F to quantity C.
• C) there will be excess demand of AC in the labour market.
• D) there will be unemployment of AC in the labour market.
• E) the free- market equilibrium wage is P0 and the labour market is unaffected by the minimum wage.

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Definitions:

T Test

A statistical analysis method that contrasts the averages of two groups to ascertain if a substantial disparity exists between the two.

Correlation Coefficients

Statistical measures that indicate the extent to which two variables fluctuate together, showing the strength and direction of their relationship.

Linear Regression

A calculation of the value of one variable given the value of another. Linear regression assumes that the relationship between variables is linear. See also regression.

Inferential Statistics

The branch of statistics that allows one to make predictions or inferences about a population based on a sample of data.