In a Labor Market Characterized by a Downward-Sloping Demand Curve

question 23

Multiple Choice

In a labor market characterized by a downward-sloping demand curve and an upward-rising supply curve,the disemployment effect of a minimum wage does not equal the total unemployment caused by the minimum wage.Which of the following can explain this difference?

• A)The demand for unskilled labor increases with an increase in the wage rate
• B)At a higher wage,more people may enter the job market
• C)The demand for skilled labor increases with an increase in the wage rate
• D)At a higher wage,the supply of labor becomes inelastic

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Definitions:

Western Culture

A set of knowledge, behaviors, customs, and values predominant in countries in the Western hemisphere, historically influenced by European traditions.

Value Orientations

Value Orientations are the basic beliefs and attitudes that guide behavior and decisions, reflecting what is important to an individual or culture.

Self-Assertion

The practice of confidently and respectfully expressing one's thoughts, feelings, and needs.

Stereotyping

Assigning generalized and oversimplified beliefs or characteristics to individuals or groups based on their membership in a particular category.