If an Increase in the Government-Imposed Minimum Wage Pushes the Price

question 45

Multiple Choice

If an increase in the government-imposed minimum wage pushes the price (wage) of unskilled labor above market equilibrium, which of the following will most likely occur in the unskilled labor market?

• A) An increase in quantity of unskilled labor demanded.
• B) A decrease in the quantity of unskilled labor supplied.
• C) A shortage of unskilled labor.
• D) A surplus of unskilled labor (unemployment).

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Definitions:

Status Quo

The existing state of affairs or current condition, typically used in the context of discussions about changing or maintaining it.

Kurt Lewin

A pioneering psychologist known for his contributions to social, organizational, and applied psychology, including the change management model.

Change Process

The series of actions or steps taken to modify or transform practices, systems, or organizational structures.

Resistance to Change

Refers to the unwillingness or inability of individuals or organizations to adapt to new conditions or modifications.