-Refer to the Above Figure

question 352

Multiple Choice

-Refer to the above figure. Suppose the government imposes a minimum wage rate of $20.00 per hour. This will likely result in

• A) a surplus of labor.
• B) a shortage of labor.
• C) an equilibrium in the labor market.
• D) an increase in the demand for labor.

---

Definitions:

Utility

In economics, utility is a measure of the satisfaction or happiness that a consumer derives from consuming goods and services.

Mayor

An elected official who acts as the head of a city, town, or municipality, responsible for implementing and overseeing local government policies and functions.

Social Welfare

The well-being of a community in terms of health, prosperity, and happiness, often considered in economics and social policy decision-making.

Utility Function

A representation in economics of how a consumer ranks different goods or bundles of goods, based on the level of happiness, satisfaction, or utility they provide.