If the Median Wage Is $9 in Country X and $8

question 28

Multiple Choice

If the median wage is $9 in country X and $8 in country Y and both countries have similar elasticities of labor supply and demand,then a minimum wage of $4 in both countries will tend to:

• A) make unemployment higher in country X than in country Y.
• B) make unemployment higher in country Y than in country X.
• C) make unemployment the same in both countries.
• D) have no effect in either country.

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Definitions:

Statutory Lien

A legal claim on property, either personal or real, granted by law to creditors as security for a debt or obligation.

Debtor

An individual or entity that owes money or is in debt to another party.

Composition Agreement

An arrangement between a debtor and their creditors in which the creditors agree to accept a partial payment in satisfaction of the debts owed.

Creditors

Creditors are individuals or entities that are owed money by another entity or individual, known as a debtor.