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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