Cost Analysis

question 22

Essay

Cost Analysis. Demand and supply conditions in the market for unskilled labor are an important concern to business and government decision makers. Consider the case of a federally-mandated minimum wage set above the equilibrium or market clearing wage level. Some of the following factors have the potential to influence the demand or quantity demanded of unskilled labor. Influences on the supply or quantity supplied can also result. Holding all else equal, describe these influences as increasing or decreasing, and indicate the direction of the resulting movement along or shift in the relevant labor demand and/or supply curve(s). Will wage rates rise or fall?
A. An increase in the popularity of self-service restaurants, gas stations, and so on.
B. A rise in welfare benefits.
C. A decrease in the quality of secondary education.
D. A rise in interest rates.
E. An increase in the minimum wage.

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Definitions:

Interneurons

Neurons that transmit impulses between other neurons, especially as part of reflex arcs or neural circuits, without directly innervating muscles or glands.

EPSPs

Excitatory Postsynaptic Potentials, which are temporary increases in postsynaptic membrane potential caused by the flow of positively charged ions into the postsynaptic cell.

IPSPs

Inhibitory Postsynaptic Potentials (IPSPs) are synaptic potentials that make a postsynaptic neuron less likely to generate an action potential.

Neuronal Membrane

The lipid bilayer that surrounds a neuron, maintaining the ionic environment essential for neurotransmission.