In a Labor Market Without an Efficiency Wage, Minimum Wage

question 122

Multiple Choice

In a labor market without an efficiency wage, minimum wage, or union wage, when the real wage rate is less than the equilibrium real wage rate, there is a ________ of labor and the real wage rate will ________.

• A) surplus; fall
• B) shortage; fall
• C) shortage; rise
• D) surplus; rise
• E) shortage; not change because it is fixed

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Definitions:

Lawmakers

Lawmakers are elected or appointed officials responsible for making and enacting the laws that govern a state or country.

Immigrants

People who move to a country other than their own in order to settle there, either temporarily or permanently.

United States

A federal republic composed of 50 states, a federal district, five territories, and various minor islands, known for its large economy and diverse cultural landscape.

Simpson-Rodino Law

Also known as the Immigration Reform and Control Act of 1986, it was legislation passed in the United States that sought to amend, revise, and reform the status of unauthorized immigrants set forth in the Immigration and Nationality Act.