-The Above Figure Shows the Labor Market in an Undeveloped

question 137

Multiple Choice

-The above figure shows the labor market in an undeveloped nation. If the minimum wage is set at $5.00 per hour, what effect will it have on the market for low-skilled labor?

• A) The minimum wage will have no effect when set above the equilibrium wage rate.
• B) The minimum wage will create a surplus of low-skilled labor.
• C) The minimum wage will create a shortage of low-skilled labor.
• D) The minimum wage will attract more labor to the low-skilled labor market and cause the wage rate to fall.

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Definitions:

Social Network

A network of social interactions and personal relationships, or a platform on the internet that facilitates these interactions.

Emotional Benefit

The positive psychological effect or satisfaction gained by a person from a product, service, or experience.

Social Disadvantage

A condition or circumstance that places individuals or groups at a disadvantage in society, often rooted in factors like poverty, discrimination, or lack of access to resources.

Economic Disadvantage

A condition where individuals or groups have less financial resources and opportunities than others within a society.