-The Above Figure Shows the Labour Market in an Undeveloped

question 102

Multiple Choice

-The above figure shows the labour market in an undeveloped nation. If the minimum wage is set at
$5) 00 per hour, what effect will it have on the market for low- skilled labour?

• A) The minimum wage will have no effect when set above the equilibrium wage rate.
• B) The minimum wage will create a surplus of low- skilled labour.
• C) The minimum wage will attract more labour to the low- skilled labour market and cause the wage rate to fall.
• D) The minimum wage will create a shortage of low- skilled labour.

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Definitions:

Thoracic Cavity

A part of the body cavity situated between the neck and the diaphragm; it houses the lungs and heart among other structures.

Residual Volume

The amount of air that remains in a person's lungs after fully exhaling, ensuring that the lungs do not collapse.

Lungs Collapse

Lung collapse, also known as pneumothorax, occurs when air leaks into the space between the lung and chest wall, causing the lung to collapse.

Hemoglobin

A protein in red blood cells that carries oxygen from the lungs to the rest of the body and returns carbon dioxide from the body to the lungs.