The above figure shows the labor market in an undeveloped nation. If the minimum wage is set at $5.00 per hour, what effect will it have on the market for low-skilled labor?
A) The minimum wage will have no effect when set above the equilibrium wage rate.
B) The minimum wage will create a surplus of low-skilled labor.
C) The minimum wage will create a shortage of low-skilled labor.
D) The minimum wage will attract more labor to the low-skilled labor market and cause the wage rate to fall.
B
Economics
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All of the following new construction projects are examples of fixed investment spending except
A) a dental office. B) a manufacturing factory. C) a public library. D) a shopping center.
Economics
A firm sells 300,000 units per week. It charges $ 35 per unit, the average variable costs are $40, and the average costs are $55 . At what price does the firm consider shutting-down in the short run?
a. $45 b. $40 c. $95 d. $55
Economics