Solved

In an Economy with Two Distinct Sectors,the Imposition of a Minimum

Question 8

Multiple Choice

In an economy with two distinct sectors,the imposition of a minimum wage above the competitive equilibrium wage in one of those sectors will:


A) reduce the demand for labor in the non-minimum-wage sector.
B) cause workers to move to the non-minimum-wage sector.
C) decrease the equilibrium wage in the minimum-wage sector.
D) increase unemployment in the non-minimum-wage sector.
E) decrease employment in the non-minimum-wage sector.

Correct Answer:

verifed

Verified

Unlock this answer now
Get Access to more Verified Answers free of charge

Related Questions

Unlock this Answer For Free Now!

View this answer and more for free by performing one of the following actions

qr-code

Scan the QR code to install the App and get 2 free unlocks

upload documents

Unlock quizzes for free by uploading documents