In the Absence of Minimum Wages, Efficiency Wages, or Labor

question 182

Multiple Choice

In the absence of minimum wages, efficiency wages, or labor unions, a decline in the demand for labor will likely result in _____ if wages are flexible.

• A) higher levels of employment
• B) no changes in employment
• C) a lower level of employment but likely no change in the unemployment rate
• D) a lower level of employment and a higher unemployment rate

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Definitions:

Overweight

A condition characterized by weighing more than what is considered normal or healthy for a certain height.

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A chronic health condition where the body's ability to process blood glucose, commonly referred to as blood sugar, is impaired.

Drive

An internal motivational state that compels individuals towards certain actions or goals.

Incentive

A reward or inducement for action, often used to motivate behavior.