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:

Delegate Power

The act of entrusting authority or responsibility from a higher authority to a lower one or from a principal to an agent.

Executive Branch

The branch of government responsible for implementing and enforcing laws, headed by the President and including departments and agencies that administer government functions.

Federal Government

The national government of the United States, which operates according to principles outlined in the U.S. Constitution, comprising three branches: executive, legislative, and judicial.

State of Emergency

A governmental declaration that temporarily enhances powers to the executive branch to manage emergencies or disasters.