Suppose the Equilibrium Wage Rate for Apricot Pickers Is $7

question 15

Multiple Choice

Suppose the equilibrium wage rate for apricot pickers is $7.00 per hour and at that wage rate the equilibrium quantity of apricot pickers employed is 14,000.If the minimum wage is set at $7.50 per hour,then the

• A) quantity of apricot pickers employed increases.
• B) quantity of apricot pickers employed decreases.
• C) quantity of apricot pickers employed does not change.
• D) wage rate for apricot pickers decreases.
• E) quantity of apricot pickers demanded does not change, and the quantity of apricot pickers supplied does not change.

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Definitions:

Ordinal

A scale of measure that categorizes data while also ranking them in a meaningful order, but without indicating the exact differences between ranks.

Sign Test

A nonparametric statistical test used to determine if there are differences between two paired samples.

T-test

A statistical method used to determine if there is a significant difference between the means of two groups, which may be related in certain features.

Nonparametric Technique

Statistical methods that do not assume a particular distribution for the data, often used when data doesn't fit standard distributions.