The "Elasticity" Rebuttal to the Traditional Analysis of the Minimum

question 31

Multiple Choice

The "elasticity" rebuttal to the traditional analysis of the minimum wage, stating that employers' demand for workers is unresponsive to wage changes, centers on the idea that

• A)the rich consume less than the poor out of extra income, therefore an increase in the minimum wage increases aggregate demand.
• B)the rich consume more than the poor out of extra income, therefore an increase in the minimum wage increases aggregate demand.
• C)people work harder when they feel they are adequately compensated therefore an increase in the minimum wage may pay for itself.
• D)in the short run, the demand elasticity of labor is such that business will not reduce the number of workers hired when the minimum wage increases.

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Definitions:

Population Growth

The increase in the number of individuals in a population, often measured by the rate at which the number of individuals increases over a specific time period.

American media

The various channels of communication, such as television, radio, newspapers, and the internet, operating in the United States.

Age Stratification

The division of a society into groups based on age, often affecting individuals' roles, responsibilities, and access to resources.

Cohort's Contribution

The impact or influence of a group of people born around the same time on a particular field or study.