If a Worker Becomes Unemployed Because of an Increase in the Minimum

question 125

Multiple Choice

If a worker becomes unemployed because of an increase in the minimum wage, that worker is:

• A)frictionally unemployed.
• B)structurally unemployed.
• C)cyclically unemployed.
• D)engaged in job search.

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Definitions:

Alpha (α)

Alpha, often referred to as the significance level, is a threshold used in hypothesis testing to determine whether to reject the null hypothesis, typically set at 0.05 or 5%.

Statistical Hypothesis

A conjecture about a parameter or distribution in statistics that can be tested against observational data.

Probability

The probability of an event happening, represented by a numerical value ranging from 0 to 1.

Probability

A measure of the likelihood that an event will occur, expressed on a scale from 0 (impossible) to 1 (certain).