Assume the Minimum Wage Exceeds the Market-Clearing Wage

question 48

Multiple Choice

Assume the minimum wage exceeds the market-clearing wage. If there is an increase in the supply of labor then the number of workers who are unemployed will ________, and the number of workers who are employed will ________.

• A)increase; increase
• B)increase; decrease
• C)increase; not change
• D)decrease; increase

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Definitions:

Defense Mechanisms

Psychological strategies used unconsciously to protect oneself from anxiety arising from unacceptable thoughts or feelings.

Obsessions

Persistent, unwanted thoughts, urges, or images that cause distress or anxiety.

Compulsions

Repetitive behaviors or mental acts that an individual feels driven to perform in response to an obsession or according to rigid rules.

Related

Having a connection or association with something else, either by blood, context, or similarity.