Suppose the Current Wage of Type a Workers Is $5

question 30

Multiple Choice

Suppose the current wage of Type A workers is $5 per labor hour,while that of Type B workers is $7 per labor hour.If the government sets the minimum wage in the labor market at $8 per labor hour,which of these two groups would experience a higher increase in the wage rate and by what percentage?

• A)Type B workers;the wage rate would increase by 10 percent
• B)Type A workers;the wage rate would increase by 10 percent
• C)Type A workers;the wage rate would increase by 60 percent
• D)Type B workers;the wage rate would increase by 60 percent

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Definitions:

Worker Control

The concept or practice where workers have decision-making power in the management and operations of the workplace.

Collective Bargaining

The practice of negotiating labor contracts that cover a range of workplace conditions and compensations between unions and employers on behalf of the employees.

Governance System

A structure or framework for managing, governing, or controlling a company, organization, country, or system.

Premarital Sex

Sexual activity engaged in by individuals before entering into a formal marriage or similar committed relationship.