Suppose That the Equilibrium Wage in the Low- Skilled Labour

question 150

Multiple Choice

Suppose that the equilibrium wage in the low- skilled labour market is $15.25. Further, suppose the federal government raises the minimum wage to $15.00 an hour from its present level of $14.15. The government's action of increasing the minimum wage will result in

• A) a shortage of low- skilled labour.
• B) an increase in unemployment.
• C) a decrease in unemployment.
• D) neither a shortage nor a surplus of labour in the low- skilled labour market.

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Definitions:

Non Est Factum

A defense in contract law where a person argues they were unaware of the nature of the document signed due to a significant mistake.

Misrepresentation

A false statement of fact made by one party to another, which has the effect of inducing that party into entering a contract.

Remedies

Legal measures or actions available to a party to enforce a right or redress a harm.

Fraudulent Misrepresentation

A false statement made knowingly or recklessly intended to deceive the other party, leading to a contract or agreement being voidable.