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:

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A type of memory in which previous experiences aid in the performance of a task without conscious awareness of these previous experiences.

Acrostic Method

A mnemonic device that makes use of the first letters of words in a phrase or list to create a new word or phrase.

Method of Loci

A mnemonic technique where information is visualized within familiar spatial locations to improve recall.

Solar System

The collection of planets and their moons in orbit around the Sun, along with smaller bodies such as asteroids and comets.