The Long-Run Market Solution to a Wage That Is So

question 26

Multiple Choice

The long-run market solution to a wage that is so low that workers cannot survive is:

• A) the reallocation of property rights, reducing the wage of some but increasing the wage for those earning a below-subsistence wage.
• B) the reallocation of scarce resources to those who need it the most.
• C) the starvation of some low-wage workers until the supply of labor shifts to the left and the wage for survivors increases to above subsistence.
• D) government intervention into the market to establish a minimum wage so that all workers earn at least a subsistence wage.

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Definitions:

Intermediate Difficulty

A level of challenge that is neither too hard nor too easy, often considered optimal for learning and engagement.

Immediate Gratification

The desire to experience pleasure or fulfillment without delay or deferment, often prioritizing short-term rewards over long-term goals.

Affective Forecasting

The process of predicting how one will feel in the future, often with a focus on emotional reactions to specific events.

Compensatory Responses

Physiological reactions that occur in opposition to the effects of a drug or stimulus to maintain homeostasis.