Use the Figure Below to Answer the Following Questions

question 62

Multiple Choice

Use the figure below to answer the following questions.

Figure 18.3.2
-Refer to Figure 18.3.2. Suppose this industry is initially in a monopsony situation and then the government introduces a minimum wage of $8 per hour. Choose the correct statement.

• A)The wage rate rises, but employment decreases.
• B)The wage rate rises, but employment stays the same.
• C)The wage rate rises to $8 per hour, and employment increases to 800 hours.
• D)The wage rate rises to $8 per hour, and employment increases to 600 hours.
• E)The wage rate rises to $8 per hour, and employment increases to 500 hours.

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Definitions:

Endocrine System

A network of glands and organs that produce, store, and secrete hormones to regulate the body's growth, metabolism, and sexual function.

Hormones

Chemical substances produced by glands in the body that regulate the activity of certain cells or organs.

Bloodstream

The flowing body fluid that circulates throughout the body via the circulatory system, carrying oxygen, nutrients, and hormones to various tissues and removing carbon dioxide and other wastes.

Psychological Influences

Factors that affect mental processes and behavior, including emotions, attitudes, thoughts, and social dynamics.