Refer to the Information Provided in Figure 14

question 44

Multiple Choice

Refer to the information provided in Figure 14.4 below to answer the questions that follow.
Figure 14.4
-Refer to Figure 14.4.A minimum wage of $12

• A)will lead to unemployment of 10.
• B)will lead to unemployment of 20.
• C)will lead to unemployment of 40.
• D)will have no effect because the minimum wage is set above the equilibrium wage and for a minimum wage to have any effect on the labor market it must be below the equilibrium wage.

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Definitions:

Negative Income Tax

Cash payments by the government to the poor—an income tax in reverse. The cash payments decrease as income levels increase.

Unemployment Rate

The percentage of the labor force that is jobless and actively looking for employment.

Poverty Rate

The percentage of the population that lives below the national poverty line, reflecting the portion of the community considered to be living in financial hardship.

Charles Murray

An American political scientist and author known for his works on intelligence and social policy.