Suppose That the Minimum Wage Was Increased to $10 Per

question 41

Multiple Choice

Suppose that the minimum wage was increased to $10 per hour. Which of the following would be most likely to result from the minimum wage increase?

• A) an increase in the employment of low-skill workers previously employed at wage rates of less than $10 per hour
• B) an increase in the number of jobs providing low-skill workers with on-the-job training
• C) a reduction in the number of teenagers unemployed
• D) an increase in the demand for high-skill workers providing services that are a good substitute for those whose wages were pushed up by the higher minimum wage

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Definitions:

Correlation Coefficient

A statistical measure that describes the size and direction of a relationship between two or more variables.

Covariance

A measure of the joint variability of two random variables.

Correlation Coefficient

A numerical index that reflects the linear relationship between two variables, ranging from -1 to 1.

Linear Relationship

A relationship between two variables where the change in one variable is associated with a proportional change in the other variable.