Use the Following Table to Answer the Next Five Questions

question 67

Multiple Choice

Use the following table to answer the next five questions.

-If a minimum wage is set at $5.50,predict the amount of disequilibrium in the labor market.

• A) There would be a labor shortage of 25,515,000.
• B) There would be a labor surplus of 25,515,000.
• C) There would be neither a shortage nor a surplus.
• D) A labor surplus of 25,515,000 would be eliminated because individuals would decide to work in the illegal black market.
• E) A labor surplus of 25,515,000 would increase as individuals find work in the illegal black market.

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Definitions:

Individual Mandate

A requirement, typically within healthcare policy, that individuals must purchase or otherwise obtain a certain good or service, such as health insurance.

Commerce Clause

A provision in the U.S. Constitution that grants Congress the power to regulate trade among the states and with foreign nations.

Economic Activity

Actions that involve the production, distribution, and consumption of goods and services in an economy.

Working Poor

Individuals who are employed but whose earnings are not sufficient to meet the poverty line in their location.