According to the Above Table, If the Minimum Wage Is

question 37

Multiple Choice

$\begin{array} { c c c } \hline \begin{array} { c } \text { Real wage rate } \\\text { (2005 dollars } \\\text { per hour) }\end{array} & \begin{array} { c } \text { Quantity of labor demanded } \\\text { (millions of hours } \\\text { per month) }\end{array} & \begin{array} { c } \text { Quantity of labor supplied } \\\text { (millions of hours } \\\text { per month) }\end{array} \\\hline 5 & 360 & 260 \\10 & 325 & 275 \\15 & 300 & 300 \\20 & 280 & 330 \\25 & 250 & 350 \\\hline\end{array}$
According to the above table, if the minimum wage is set at $20 per hour, then

• A)the labor supply curve will shift until $20 is the new equilibrium real wage rate.
• B)there is an excess demand for labor.
• C)the quantity of labor supplied exceeds the quantity of labor demanded by 50 million hours per month.
• D)the labor demand curve will shift until $20 is the new equilibrium real wage rate.
• E)the quantity of labor demanded will increase until it is equal to the quantity of labor supplied.

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Definitions:

Selection System

The process by which organizations identify, assess, and choose candidates for employment.

Real Benefit

The actual advantageous impact received from a product, service, or action, beyond any superficial gains.

Internal Recruiting

Is the process of looking inside the organization for existing qualified employees who might be promoted to higher-level positions.

Stagnation

A period of slow economic growth or decline, often marked by high unemployment and underused production capacity.