Table 28-7
Below is data about the labor market in the city of Productionville.
-Refer to Table 28-7. If the local government imposed a minimum wage of $4 in Productionville, how many people would be unemployed?
A)0
B)2,000
C)3,000
D)10,000

Question

Table 28-7
Below is data about the labor market in the city of Productionville. 
-Refer to Table 28-7. If the local government imposed a minimum wage of $4 in Productionville, how many people would be unemployed?
A)0 
B)2,000 
C)3,000 
D)10,000

Quizplus · Accepted Answer

A minimum wage of $4 is below the equilibrium wage, so it would not affect employment levels, resulting in no unemployment.

Table 28-7 Below Is Data About the Labor Market in the City