Use the Figure Below to Answer the Following Questions

question 62

Multiple Choice

Use the figure below to answer the following questions.

Figure 18.3.2
-Refer to Figure 18.3.2. Suppose this industry is initially in a monopsony situation and then the government introduces a minimum wage of $8 per hour. Choose the correct statement.

• A)The wage rate rises, but employment decreases.
• B)The wage rate rises, but employment stays the same.
• C)The wage rate rises to $8 per hour, and employment increases to 800 hours.
• D)The wage rate rises to $8 per hour, and employment increases to 600 hours.
• E)The wage rate rises to $8 per hour, and employment increases to 500 hours.

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Definitions:

Racial Segregation

The enforced separation of different racial groups in a country, community, or establishment, often resulting in discrimination and inequality.

Fair Housing Act

A United States federal law passed in 1968 aimed at eliminating discrimination in the rental, sale, and financing of housing based on race, religion, national origin, or sex.

Bicultural

Having or combining the cultural attitudes and customs of two nations, cultures, or ethnic groups.

Mainstream Society

Refers to the dominant trends, values, and norms of a society that are widely accepted and practiced by the majority of its members.