The Country of Timbuktoo Is Introducing a Minimum Wage for the First

question 20

Multiple Choice

The country of Timbuktoo is introducing a minimum wage for the first time in its history.It is above the market-clearing wage rate for unskilled workers.The effect of the minimum wage would be to

• A)reduce the equilibrium real wage rate.
• B)reduce the level of output.
• C)shift the labour demand curve to the right.
• D)shift the labour supply curve to the left.

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Definitions:

Football Tickets

Specific passes that allow entry to football (soccer or American football) games.

Coffee

A beverage made from roasted and ground seeds of the Coffea plant, widely consumed globally for its stimulating effect due to caffeine.

Utility-Maximizing

The behavior or practice of selecting the combination of goods and services that provides the highest level of satisfaction or utility to an individual, given a particular budget constraint.

Pork

In political context, it refers to government spending for localized projects secured primarily to bring money to a representative's district; in food, it's the meat from a pig.