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 $7 in Productionville, how many people would be unemployed?
A)0
B)2,000
C)5,000
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 $7 in Productionville, how many people would be unemployed?
A)0 
B)2,000 
C)5,000 
D)10,000

Quizplus · Accepted Answer

A minimum wage of $7 would create a surplus of labor, meaning more people are willing to work at that wage than there are jobs available. This surplus is the number of unemployed people, which is 5,000.

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