Minimum Wages Create Unemployment in Markets Where They Create a

question 5

Multiple Choice

Minimum wages create unemployment in markets where they create a

• A)shortage of labor.Unemployment of this type is called frictional.
• B)shortage of labor.Unemployment of this type is called structural.
• C)surplus of labor.Unemployment of this type is called frictional.
• D)surplus of labor.Unemployment of this type is called structural.

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Definitions:

Halo Effect

A cognitive bias where the perception of one positive characteristic influences the assumption of other positive traits in the same individual.

Sleeper Effect

A phenomenon where a message that initially has little impact becomes more persuasive over time, typically because of a delay in the message's perceived importance or credibility.

Psychological Reactance

An enthusiastic reaction towards proposals, persons, directives, or laws that intimidate or eradicate specified freedoms of behavior.

Sensory Overload

A condition where one experiences discomfort or incapacity to process the volume or intensity of incoming sensory information.