If a Minimum Wage Law Is Passed Imposing a Price

question 174

Multiple Choice

If a minimum wage law is passed imposing a price floor above the equilibrium price of unskilled labor and employers increasingly used efficiency wages, it would ___ structural unemployment and ____ the natural rate of unemployment:

• A)​Increase; increase.
• B)​Increase; not change.
• C)​Not change, increase.
• D)​Do none of the above.

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Definitions:

Operant Chamber

A laboratory apparatus used to study animal behavior through operant conditioning, typically involving stimuli and levers for animals to manipulate in order to receive a reward.

Isolates an Animal

The process of segregating an animal from others for experimental, health, or social reasons.

Cognitive Revolution

A period in the 20th century marked by the shift from behaviorist psychology to cognitive psychology, emphasizing the role of mental processes.

Mental Processes

Internal cognitive activities that enable consciousness, including perception, thinking, judgment, and memory.