-The Above Figure Illustrates the Labour Market for Fast Food

question 28

Multiple Choice

-The above figure illustrates the labour market for fast food restaurants in a small city in Peru. What would be the effects of a minimum wage imposed at $5.50 per hour?

• A) Unemployment will be equal to 400 hours.
• B) A shortage of 400 hours.
• C) Unemployment will be equal to 200 hours.
• D) Nothing because the minimum wage has no effect on the equilibrium price and quantity

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Definitions:

Mechanic's Lien

A legal claim against a property for unpaid construction work or supplies, giving the claimant a right to secure payment.

Personal Property

Movable assets owned by an individual or entity, as opposed to real property like land or buildings.

Real Property

Legal term describing land and anything permanently attached to it, such as buildings.

Mortgagee

The lender in a mortgage loan agreement, typically a bank or financial institution.