An Increase in the Minimum Wage Imposed by the Government

question 69

Multiple Choice

An increase in the minimum wage imposed by the government causes an increase in unemployment because:

• A)the labor supply curves are backward-bending.
• B)the demand curves for labor are downward-sloping.
• C)leisure is a normal good.
• D)the increase in the wage rate reduces the price of leisure.

Understand the complementarity and substitutability of inputs in production.

Understand how to determine the optimal number of units of land, labor, and capital to hire based on Marginal Revenue Product (MRP) and factor costs.

Analyze the conditions under which a firm is considered a perfect or imperfect competitor in the labor market.

Calculate the total wage bill for a given number of workers and wage rate.

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Definitions:

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Large, naturally occurring bodies of fresh or saltwater, surrounded by land, not part of the ocean.

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In finance, capitalization often refers to the total market value of a company's outstanding shares, or the process of funding a project or business with capital.

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Pertaining to or characteristic of the southern part of a region, country, or the world, often used in geographic, cultural, or climatic contexts.

Poetry

A literary form that emphasizes expression, aesthetic and rhythmic qualities of language.