Exhibit 4-10 ​ ​

question 54

Multiple Choice

Exhibit 4-10 ​
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                  Unskilled Labor Market
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Refer to Exhibit 4-10. Suppose that the government imposes a minimum wage of $7. How many fewer unskilled workers would be employed at the minimum wage, compared to the number that would be employed at the equilibrium wage?

• A)2,000
• B)3,000
• C)4,000
• D)5,000
• E)7,000

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Definitions:

Total Utility

The total satisfaction or benefit a consumer receives from consuming a particular quantity of a good or service.

Noncash Gift-giving

The act of giving gifts that do not involve direct monetary exchange, emphasizing the value of thoughtfulness and relationships.

Marginal Utility

Marginal utility refers to the additional satisfaction or utility a consumer receives from consuming one more unit of a good or service.

MU to P Ratio

An alternative expression for the marginal utility to price ratio, assessing the level of satisfaction obtained per unit of expenditure.