Minimum wage laws create unemployment for low-skilled workers because the legal minimum wage is set
A) above the market wage, causing the quantity of labor supplied to be greater than the quantity of labor demanded.
B) below the market wage, causing the quantity of labor supplied to be greater than the quantity of labor demanded.
C) above the market wage, causing the quantity of labor supplied to be less than the quantity of labor demanded.
D) below the market wage, causing the quantity of labor supplied to be less than the quantity of labor demanded.
A
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Which type of unemployment is a permanent and healthy phenomenon in a dynamic economy?
A) cyclical B) avoidable C) structural D) frictional E) unavoidable
Suppose the four-firm concentration ratio for an industry is 10 percent. This value indicates ________. If the four-firm concentration ratio for another industry is 95 percent, this value indicates ________
A) the industry is competitive; the industry has very little competition B) the industry has very little competition; the industry is very competitive C) the industry has firms worldwide; the industry is concentrated in one country D) the HHI will be high; the HHI will be low