If an Increase in the Government-Imposed Minimum Wage Pushes the Price

question 45

Multiple Choice

If an increase in the government-imposed minimum wage pushes the price (wage) of unskilled labor above market equilibrium, which of the following will most likely occur in the unskilled labor market?

• A) An increase in quantity of unskilled labor demanded.
• B) A decrease in the quantity of unskilled labor supplied.
• C) A shortage of unskilled labor.
• D) A surplus of unskilled labor (unemployment).

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Definitions:

Oxytocin

A hormone and neuropeptide that plays a critical role in social bonding, sexual reproduction, childbirth, and the period after childbirth.

Hypothalamus

A small but crucial part of the brain that regulates hormones, temperature, hunger, thirst, and circadian rhythms.

Zona Glomerulosa

The outermost layer of the adrenal cortex, responsible for the production of aldosterone, which regulates blood pressure and electrolyte balance.

Acinar Cells

Cells that form acinus, secreting substances in the pancreas and salivary glands.