Suppose That the Market for Window Cleaners Is in Equilibrium

question 54

Multiple Choice

Suppose that the market for window cleaners is in equilibrium at a wage of $16. If window cleaning becomes safer:

• A) the demand for window cleaners will increase, causing the equilibrium wage to rise above $16.
• B) the demand for window cleaners will decrease, causing the equilibrium wage to fall below $16.
• C) the supply of window cleaners will increase, causing the equilibrium wage to fall below $16.
• D) the supply of window cleaners will decrease, causing the equilibrium wage to fall below $16.

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Definitions:

Calendar Year

The one-year period that begins on January 1 and ends on December 31, used for most civil purposes and by many businesses as a fiscal year.

Work Week

A work week refers to the standard period of time during which an employee is expected to work, usually defined by the employer, and often consisting of 40 hours.

FICA-OASDI

Taxes collected under the Federal Insurance Contributions Act for Old Age, Survivors, and Disability Insurance, commonly known as Social Security.

Cumulative Earnings

The total amount of net income a company has earned over a specific period until the present date, not including dividends.