Suppose the Minimum Wage Is $4 Per Hour, and 1,100

question 61

Multiple Choice

Suppose the minimum wage is $4 per hour, and 1,100 units of labour are hired. Then the government raises the minimum wage to $6 per hour, and 900 units are now hired. Choose the correct statement.

• A)Total wages paid to workers has increased.
• B)The price elasticity of demand for labour is 0.5.
• C)There is unemployment in this labour market.
• D)The quantity of labour supplied is greater at the higher minimum wage.
• E)The labour market is efficient.

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Definitions:

Latin America

A region that includes Mexico, Central America, South America, and the Caribbean, known for its diverse cultures, languages, and historical influences.

Job Corps

A program initiated by the U.S. government to offer free education and vocational training to young people primarily from low-income backgrounds.

Civilian Conservation Corps

A public work relief program in the United States for young men from unemployed families, operative during the Great Depression, focused on natural resource conservation.

Dominican Republic

A country located on the island of Hispaniola in the Caribbean region, sharing the island with Haiti.