Which of the Following Has a Tendency to Raise the Unemployment

question 53

Multiple Choice

Which of the following has a tendency to raise the unemployment rate?

• A)implementing a minimum wage in an economy
• B)reducing unemployment insurance in an economy
• C)offering wages at the market-clearing rate
• D)reducing labor unions membership in an economy

Understand the concept of market equilibrium and how it is determined by the intersection of supply and demand.

Identify conditions of excess supply and excess demand in a market and predict the market's response.

Analyze the effects of price changes on market equilibrium.

Understand the impact of external factors (like an increase in the price of raw materials) on supply and demand.