The Imposition of a Minimum Wage on a Competitive Labor

question 12

Multiple Choice

The imposition of a minimum wage on a competitive labor market will likely

• A) create additional employment opportunities because some low-skilled workers will now see their wage increase.
• B) lower the wages of workers earning more than the minimum wage.
• C) create unemployment as some people enter the labor market while some firms reduce the quantity of labor they are willing to employ due to the increased wage.
• D) increase unemployment of high-skilled workers as firms substitute for high-skilled labor with low-skilled labor.
• E) lower the unemployment rate of low-income families.

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Definitions:

Erikson

A psychoanalyst known for his theory on the psychosocial development of human beings, highlighting stages that span throughout a person's lifetime.

Unrealistic Self-Concept

A perception or understanding of oneself that significantly deviates from reality or factual accuracy.

Self-Doubt

The feeling of not having confidence in oneself or one's abilities.

Strong Feelings

Intense emotional experiences that can include a wide range of emotions, such as love, anger, joy, or sadness.