Joe Sabia, an Assistant Professor of Public Policy at American

question 74

Multiple Choice

Joe Sabia, an assistant professor of public policy at American University in Washington, DC, says that a 10 percent increase in the minimum wage reduces retail employment by 1 percent and reduces employment among young workers by 3.4 percent.If President Obama is successful increasing the minimum wage by 30 percent as explained in "Obama Wants $9.50 Minimum Wage," we can expect

• A) Employment to decrease by about 30 percent and prices to increase.
• B) Unemployment to increase by about 30 percent and prices to decrease.
• C) Retail employment to decrease by about 3 percent and young workers'employment to decrease by about
• 10)2 percent.
• D) Prices to increase and unemployment to increase by about 3 percent.

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Definitions:

Mental Flexibility

The ability to adapt one's thinking and behavior in response to changing circumstances or new information.

Creativity

The ability to produce original and valuable ideas or solutions by thinking outside the conventional boundaries.

Sigmund Freud

An Austrian neurologist and the founder of psychoanalysis, a clinical method for treating psychopathology through dialogue between a patient and a psychoanalyst.

Unconscious

A reservoir of feelings, thoughts, urges, and memories that are outside of our conscious awareness.