Suppose the Government Abolished the Minimum Wage Law and the Law

question 32

Multiple Choice

Suppose the government abolished the minimum wage law and the law that requires union wage rates to be paid on all government contract jobs. We would expect to see

• A) a decline in the natural rate of unemployment.
• B) an increase in claims for unemployment benefits.
• C) the duration of unemployment to increase.
• D) a recession.

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Definitions:

Uniform Commercial Code

A comprehensive set of laws governing commercial transactions in the United States, intended to harmonize laws across states and simplify transactions.

Agent

A person authorized to act on behalf of another person, typically in a business or legal matter.

Negotiable

A term denoting something that can be transferred or assigned from one party to another, typically referring to financial instruments or goods.

Purpose

The reason for which something is done or created, or for which something exists.