If the equilibrium wage in the market for unskilled labor is $8.00 per hour and the government sets a minimum wage at $8.00 per hour, which of the following will occur?
A. The minimum wage will have no effect because it is set at the equilibrium wage.
B. Some unskilled workers will lose their jobs.
C. The wages paid to unskilled workers will rise.
D. The number of workers employed in the market will increase.
Answer: A
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Price discrimination is the practice of
A) charging different prices for the same good when the price differences arise because of differences in cost. B) charging different prices for the same good when the price differences are not due to differences in cost. C) charging higher prices for brand-named goods and lower prices for generic versions of the goods. D) charging different prices for different qualities of a product.
Suppose that a haircut in your hometown costs $20, while the price for the same haircut in Mumbai is 600 Indian rupees. At which nominal exchange rate is the dollar price lower for the Mumbai haircut?
A) 0.029$/Rs. B) 20Rs./$ C) 25Rs./$ D) 0.04$/Rs.