Figure 20-1 Price (dollars per hour) $8.00 6.50 5.00 0 8 10 12 Labor (millions of workers) 415 Qul QIS) Q16) B 917)C 314) Q15) Q181A Q19) A A Oi.) CPL = (+/co) x 100 15) Refer to Figure 20-1. Based on the graph of the labor market above, if a minimum wage is set at $5 per hour, which of the following will occur? A) The unemployment rate will rise. B) The unemployment rate will fall. C) The level of unemployment will rise, but the percentage of the labor force unemployed will not change. D) None of the above will occur.

Figure 20-1 Price (dollars per hour) $8.00 6.50 5.00 0 8 10 12 Labor (millions of workers) 415 Qul QIS) Q16) B 917)C 314) Q15) Q181A Q19) A A Oi.) CPL = (+/co) x 100 15) Refer to Figure 20-1. Based on the graph of the labor market above, if a minimum wage is set at $5 per hour, which of the following will occur? A) The unemployment rate will rise. B) The unemployment rate will fall. C) The level of unemployment will rise, but the percentage of the labor force unemployed will not change. D) None of the above will occur.

Principles of Economics 2e

2nd Edition

ISBN:9781947172364

Author:Steven A. Greenlaw; David Shapiro

Publisher:Steven A. Greenlaw; David Shapiro

Chapter15: Poverty And Economic Inequality

Section: Chapter Questions

Problem 44P: In country A, the population is 300 million and 50 million people are living below the poverty line....

See similar textbooks

Similar questions

Who is included in the top income quintile?
What are some of the most important laws that protect employee right?
What is the formula for the wage elasticity of labor supply?
Explain why voluntary Martians improve social welfare.
Using two demand and supply diagrams, one for the low-wage labor market and one for the high-wage labor market, explain how information technology can increase income inequality if it is a complement to high-income workers like salespeople and managers, but a substitute for low-come workers like file clerks and telephone receptionists.
What goods and services would you include in an estimate of the basic necessities for a family of four?
What is the safety net?
Who are the near-poor?
Explain what the long- and short-term consequences are of not promoting equality or working to reduce poverty.
Agricultural price supports result in governments holding large inventories of agricultural products. Why do you think the government cannot simply give the products away to poor people?
Will a free market tend to encourage or discourage discrimination? Explain briefly.
Table 14.11 shows levels of employment (Labor), the marginal product at each of those levels, and a monopolys marginal revenue. What is the monopolys marginal revenue product at each level of employment? If the monopoly operates in a perfectly competitive labor market where the going market wage is 20, what is the films profit maximizing level of employment?