Suppose There Is a Semiskilled Labor Market and Two Different

question 22

Multiple Choice

Suppose there is a semiskilled labor market and two different unskilled labor markets.Initially,all three markets are in competitive equilibrium.What would happen if the government imposed a minimum wage rate above the competitive equilibrium rate in one of the unskilled labor markets?

• A)Wage rates will rise in all three markets.
• B)Wage rates will rise in both unskilled labor markets,but remain unchanged in the semiskilled labor sector.
• C)Wage rates will rise in the semiskilled labor market and in the unskilled labor market covered by the minimum wage,but fall in the other unskilled labor market.
• D)Wage rates will rise in the unskilled labor market covered by the minimum wage,remain unchanged in the other unskilled labor market,and fall in the semiskilled labor market.
• E)Wage rates will rise in the unskilled labor market covered by the minimum wage,but remain unchanged in the other two markets.

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Definitions:

Spontaneous Recovery

The reappearance of a conditioned response after a period of its extinction or reduction, without further conditioning.

Conditioned Stimulus

An initially indifferent stimulus which, after being combined with an unconditioned stimulus, triggers a conditioned response.

Unconditioned Stimulus

In traditional conditioning, a stimulus instinctively and spontaneously elicits a response without needing any previous learning.

Discrimination

The unjust or prejudicial treatment of different categories of people, especially on the grounds of race, age, or sex; in psychology, it also refers to the ability to perceive and differentiate between stimuli.