In the Above Figure, a Minimum Wage Will Not Change

question 77

Multiple Choice

In the above figure, a minimum wage will not change the unemployment rate if it is set at

• A)$6.00.
• B)$9.00.
• C)$12.00.
• D)Both B and C are correct because any wage rate that exceeds $9 per hour has no effect on the unemployment rate.
• E)None of the above because the minimum wage always affects the unemployment rate.

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Definitions:

Winner-Takes-All Market

A market in which the dominant player captures almost all of the market share and benefits, leaving very little for other competitors.

Marginal Revenue Product

Incremental income earned by utilizing one more unit of a resource, like labor or capital.

Media Hype

The excessive promotion or sensationalism of news stories, products, or events in the media.

Income Distribution

The way in which a nation's total GDP is distributed amongst its population or the distribution of income among individuals or households of a country.