Refer to the Diagram Below, Which Shows a Competitive Low-Wage

question 36

Multiple Choice

refer to the diagram below, which shows a competitive low-wage labor market:


-Consider the diagram.Suppose the government establishes a minimum wage of $7.00 in this market.If all displaced workers subsequently contribute an amount equal to their next most productive employment,the net loss of domestic output is:

• A)$17.50
• B)$40
• C)$50
• D)$75

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Definitions:

Scandinavian Countries

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Professionalization

The process of developing or elevating an occupation to a status requiring specialized knowledge and often formal qualification.

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