Assume That This Graph Illustrates a Perfectly Competitive Labor Market

question 18

Multiple Choice

Assume that this graph illustrates a perfectly competitive labor market. Suppose a minimum wage law required the wage to be at least $20 per hour in this market. If that happened, then:

• A)there would be an excess supply of person-hours.
• B)there would be excess demand for person-hours.
• C)the demand for person-hours would shift to the right.
• D)there would be no change in the equilibrium number of person-hours.

---

Definitions:

Long-term Memory

A type of memory capable of storing information for extended periods, ranging from a few days to decades, and includes facts, experiences, and skills.

Cocktail-Party Phenomenon

The ability to focus one's auditory attention on a particular stimulus while filtering out a range of other stimuli, as if at a noisy party.

Broadbent's Filter Theory

A theory suggesting that information is filtered through a selective attention mechanism that allows only a portion of sensory inputs to reach consciousness.

Sensory Modalities

The ways through which living organisms perceive their environment, such as sight, smell, touch, taste, and hearing.