The Number of Unskilled Workers Employed Before and After an Increase

question 86

Multiple Choice

The number of unskilled workers employed before and after an increase in the minimum wage is found to be the same. This means

• A)the change in minimum wage created a surplus of workers in the unskilled labor market.
• B)the change in minimum wage created a shortage of work
• C)the minimum wage could still be below the equilibrium wage for unskilled labor.
• D)changes in minimum wage never have an impact on the unskilled labor market.

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Definitions:

Cost Of Goods Sold

The direct costs related to the production of the goods sold by a company, including materials and labor.

Direct Materials

Costs of raw materials that are directly used in the production of a product, easily traceable to the product being manufactured.

Direct Labor

The labor costs directly associated with the production of goods or services, including wages of workers directly involved in production.

Manufacturing Overhead

All manufacturing costs that are not directly related to the production of a product, including indirect materials, labor, and other expenses.