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

question 151

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:

Opium

A narcotic drug obtained from the poppy plant, used historically for pain relief and known for its potential for addiction.

Barbiturates

A class of drugs used as sedatives and hypnotics, which can depress the central nervous system, leading to various effects from mild sedation to complete anesthesia.

Cocaine

An illicit narcotic with central nervous system stimulant effects, widely abused for its euphoric effects and potential for addiction.

Caffeine

A stimulant commonly found in coffee, tea, and other beverages, known for enhancing alertness and temporarily warding off drowsiness.