If the Equilibrium Wage in the Market for Unskilled Labor

question 36

Multiple Choice

If the equilibrium wage in the market for unskilled labor is $8.00 per hour and the government sets a minimum wage at $8.00 per hour,which of the following will occur?

• A) Some unskilled workers will lose their jobs.
• B) The wages paid to unskilled workers will rise.
• C) The number of workers employed in the market will increase.
• D) The minimum wage will have no effect because it is set at the equilibrium wage.

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Definitions:

Focal Date

A specific point in time that serves as a reference or target for financial calculations or contractual obligations.

Loan Date

The specific date on which a loan agreement is signed, and the funds are disbursed to the borrower.

Plant Capacity

Plant capacity refers to the maximum output or production that a manufacturing facility can achieve under normal conditions.

Variable Costs

Costs that vary directly with the level of production or volume of output, in contrast to fixed costs.