FIGURE 14- 5 -Refer to Figure 14- 5. If This Labour Market Is

question 31

Multiple Choice

FIGURE 14- 5
-Refer to Figure 14- 5. If this labour market is monopsonistic, an increase in the minimum wage from
W2 to W3 would

• A) have no effect on employment.
• B) increase employment from what would have initially occurred.
• C) increase employment in this industry but decrease it in other industries.
• D) create unemployment where there previously was none.
• E) create unemployment in other minimum wage sectors.

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Definitions:

Deliberate System

Definition: A cognitive processing system characterized by intentional, controlled, and often slower thinking, contrasting with automatic, instinctual processes.

Automatic System

A mode of thought that is fast, unconscious, and requires minimal cognitive processing, as opposed to controlled, deliberate thought processes.

Cultural Differences

The diversity in beliefs, norms, practices, and values across different societies or groups, often leading to varied human behaviors and interactions.

Communication

The process of transferring information from one entity to another through the use of mutually understood signs, symbols, or language.