Which of the Following Is Not Correct

question 27

Multiple Choice

Which of the following is not correct?

• A)Frictional unemployment results from the process of matching workers and jobs.
• B)Structural unemployment results when the number of jobs is insufficient for the number of workers.
• C)Minimum wages are the predominant reason for unemployment in the U.S.economy.
• D)When a minimum-wage law forces the wage to remain above the level that balances supply and demand,it raises the quantity of labor supplied and reduces the quantity of labor demanded compared to the equilibrium level.

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Definitions:

Inferior Good

Items for which demand falls when the income levels of buyers go up, unlike standard goods that see an increase in demand with rising incomes.

Income Effect

How shifts in the financial status of individuals or whole economies affect their purchasing desires for specific goods or services.

Price Increase

An increase in the price of products or services.

Income Effect

Variations in income for persons or within economies and how these variations modify the demand for goods or services.