Refer to the Information Provided in Figure 14

question 63

Multiple Choice

Refer to the information provided in Figure 14.2 below to answer the questions that follow.
Figure 14.2
-Refer to Figure 14.2.According to classical economists if the wage rate is

• A)$15,the wage rate will decline to eliminate the surplus.
• B)$15,the wage rate will increase to eliminate the shortage.
• C)$6,the wage rate will decline to eliminate the surplus.
• D)$15,the wage rate will decline to eliminate the shortage.

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Definitions:

Minimum Wage

The lowest legal salary that employers can pay their employees.

Labor Union

An organization of workers that aims to negotiate with employers for better wages, working conditions, and benefits.

Efficiency Wages

A concept in economics where employers pay higher than the market equilibrium wage to increase worker productivity, loyalty, and quality.

Labor Unions

Organizations representing the collective interests of workers in negotiations with employers over wages, benefits, and working conditions.