David Card and Alan Kruger Conducted a Study of Fast-Food

question 15

Multiple Choice

David Card and Alan Kruger conducted a study of fast-food restaurants in New Jersey and Pennsylvania.The study found that

• A) there was a large reduction in employment of low-skilled workers when the minimum wage was raised in these states.
• B) the earned income tax credit is more effective in raising the incomes of low-skilled workers than increases in the minimum wage.
• C) increases in the minimum wage had a very small impact on employment.
• D) increases in the prices of food have a greater effect on wage increases in New Jersey than in Pennsylvania.

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Definitions:

General Adaptation Syndrome

A three-stage response (alarm, resistance, exhaustion) that the body has to long-term exposure to stress, proposed by Hans Selye.

Posttraumatic Stress Disorder

A psychiatric disorder that can occur in people who have experienced or witnessed a traumatic event, characterized by severe anxiety, flashbacks, and uncontrollable thoughts about the event.

General Adaptation Syndrome

A three-stage response (alarm, resistance, exhaustion) that the body goes through in reaction to prolonged stress.

Distress

Emotional suffering or pain often caused by stress, anxiety, or trauma, which can negatively impact an individual's mental and physical health.