Refer to the Graph Shown

question 84

Multiple Choice

Refer to the graph shown.If government establishes a minimum wage at $7.25 per hour:

• A)employers will be unable to find enough qualified applicants to fill the available positions.
• B)the number of job seekers will exceed the number of job vacancies, resulting in some unemployment.
• C)employers will be forced to hire 900 workers, resulting in reduced profits.
• D)there will be a shortage in this labor market.

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Definitions:

Work Place

A location where people are employed and engage in various activities to earn a living.

Lemons

In economic terms, refers to the problem of asymmetric information regarding the quality of products, especially used goods that are subpar or defective.

Peaches

Refers to the sweet, juicy fruit from the Prunus persica tree, often consumed fresh, canned, or used in culinary preparations.

Adverse Selection

A phenomenon in markets where buyers or sellers have information that one party to a transaction does not have, leading to an inefficient allocation of resources.