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:

Domestic Currency

The legal tender or currency that is circulated for use and accepted for exchange within the domestic economy of a country.

Dollarization

The process of a country adopting the US dollar as its primary currency, either officially or unofficially, alongside or in place of its own national currency.

Foreign Currency

Money or currency used in a country other than one's own.

Physical Commodity

Tangible goods that can be traded, bought, or sold, such as oil, gold, or agricultural products.