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The Following Graph Illustrates a Low Wage Labor Market

question 117

Multiple Choice

The following graph illustrates a low wage labor market. The following graph illustrates a low wage labor market.   Imposition of the $12/hour minimum wage caused worker surplus to ____ and employer surplus to _____. A) rise;fall B) fall;fall C) stay the same;fall D) rise;stay the same
Imposition of the $12/hour minimum wage caused worker surplus to ____ and employer surplus to _____.


Definitions:

Public Goods

Public goods are commodities or services that are provided without profit to all members of a society, either by the government or a private individual or organization.

Nonexclusive Good

Good that people cannot be excluded from consuming, so that it is difficult or impossible to charge for its use.

Exclusive Good

A product or service that is only available to a specific group of consumers or requires special access, often characterized by high quality and price.

Negative Externality

A cost that affects a party who did not choose to incur that cost, often associated with environmental pollution.

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