If There Is a Floor on Wages Created by a Minimum

question 25

Multiple Choice

If there is a floor on wages created by a minimum wage, union contracts, or other factors, then a decline in the marginal productivity of low-skilled workers will ________ the demand for low-skilled workers and ________ the number of unemployed workers.

• A)increase; increase
• B)increase; decrease
• C)decrease; decrease
• D)decrease; increase

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Definitions:

Horizontal Shift

A movement of a graph in the left or right direction along the horizontal axis.

Vertical Shift

A transformation that moves a graph up or down the y-axis, changing the equation's output but not its input.

Vertical Line Test

A method to determine if a graph represents a function by checking if any vertical line intersects the graph at more than one point.

Function

In mathematics, a relation between sets that associates every element of a first set to exactly one element of the second set.