Consider Two Labor Markets

question 89

Multiple Choice

Consider two labor markets.In the first,the elasticity of supply is relatively elastic,while it is relatively inelastic in the latter.Imposing a minimum wage in each market would result in ________ unemployment in the first market and ________ unemployment in the second.

• A) lower; lower
• B) higher; higher
• C) unchanged; unchanged
• D) lower; higher
• E) higher; lower

---

Definitions:

General Journal

A ledger in which all transactions are initially recorded, dated, and described.

Transposition Error

A common accounting mistake where figures are mistakenly reordered, leading to inaccurate entries and discrepancies in financial records.

Trial Balance

A bookkeeping worksheet in which the balances of all ledgers are compiled into debit and credit account columns to ensure their accuracy.

Journalized

The process of recording transactions in the accounting journals as part of the accounting cycle.