Assume That a Minimum Wage Is Created and Imposed Above

question 155

Multiple Choice

Assume that a minimum wage is created and imposed above the equilibrium wage in an otherwise perfectly competitive labor market.Which of the following will NOT occur as a result of this new law?

• A) The quantity of labor seeking jobs will rise.
• B) The unemployment rate will rise.
• C) The level of employment will increase.
• D) None of the above will occur.

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Definitions:

Hypothalamohypophysial

Pertaining to the relationship or connection between the hypothalamus and the pituitary gland, crucial for hormonal regulation.

Secondary Capillary

A term not commonly used in isolation to describe a specific type of capillary; generally, capillaries are the small blood vessels where gas and nutrient exchange occur.

Primary Capillary

The initial segment of the microcirculation system where exchange of gases, nutrients, and waste products occurs.

Neurohormones

Chemical messengers produced by neurons that are released into the bloodstream and affect distant target organs.