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

question 80

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 a job search.

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Definitions:

Competitive Markets

Markets where multiple buyers and sellers have the liberty to engage in trade based on mutual agreements.

Price Setters

Entities, such as companies or regulatory bodies, that have the power to establish prices for goods or services in a market.

Perfectly Competitive Market

An economic model where numerous small firms compete against each other with identical products, no barriers to entry or exit, and no single firm can influence market prices.

Demand

The level of demand for goods or services that individuals have the willingness and financial capacity to acquire at assorted prices throughout a defined duration.