In an Economy with Two Distinct Sectors,the Imposition of a Minimum

question 8

Multiple Choice

In an economy with two distinct sectors,the imposition of a minimum wage above the competitive equilibrium wage in one of those sectors will:

• A) reduce the demand for labor in the non-minimum-wage sector.
• B) cause workers to move to the non-minimum-wage sector.
• C) decrease the equilibrium wage in the minimum-wage sector.
• D) increase unemployment in the non-minimum-wage sector.
• E) decrease employment in the non-minimum-wage sector.

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Definitions:

Geert Hofstede

A Dutch social psychologist known for his research on cross-cultural groups and organizations, particularly for developing cultural dimensions theory.

Hierarchical Structure

An organizational form that arranges jobs and responsibilities in a graded series, with clear lines of authority and command.

Expatriate's Success

The achievement and effectiveness of an individual who lives and works outside their native country in meeting their and the organization's goals.

Strategic Goals

Long-term objectives that an organization aims to achieve, which guide its overall direction and decision-making processes.