Question: If a minimum wage rate is introduced that is higher than the equilibrium wage rate in the labour market what effect will this have? a)

If a minimum wage rate is introduced that is higher than the equilibrium wage rate in the labour market what effect will this have? a) Excess supply of labour b) A surplus of labour c) A shortage of labour d) An increase in wages

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer

Step: 1 Unlock blur-text-image

Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock

Step: 3 Unlock

Students Have Also Explored These Related Finance Questions!

The following trial balance has been extracted from the ledger of Andrea Howell, a sole trader, as at 31 May 20X3, the end of her most recent financial year. The following additional information as...

1) What is the demand for labour derived from? a) The supply of labour b) The supply of the product c) The demand for the final product d) The demand for capital 2) When might the demand for labour...

A case study in this chapter discusses the minimum wage law. a. Suppose the minimum wage is above the equilibrium wage in the market for unskilled labour. Using a supply and demand diagram of the...

6. Consider the minimum wage law. a. Suppose the minimum wage is above the equilibrium wage in the market for unskilled labour. Using a supply-anddemand diagram of the market for unskilled labour,...

A case study in this chapter discusses the national minimum wage. a) Suppose the minimum wage is above the equilibrium wage in the market for unskilled labour. Using a supply-and-demand diagram of...

1. Before corona, Indian government was at a fix as theinvestment by firms was not responsive to the interest rate. Can you think of the reason for this happening?What does it imply for the IS curve?...

The figure shows a market. If the government were to institute a price ceiling of 6 in the market, what would be the amount of the resulting shortage? $ S 10 i s ) el . 4 L foeennsanncactoneen TS D...

This is Compensation subject. Please help me answer the following questions base on your understanding at the given infos. Questions: 1. Define Demand side of labor. (Base your answer in the given...

Using the scenarios in case Exhibit 9, what role does leverage play in affecting the return on equity (ROE) for CPK? What about the cost of capital? In assessing the effect of leverage on the cost of...

Q51. If the credits for a principles of economics section is three units and an instructor teaches two sections with 100 students in each and tuition and fees at your school are$500 per credithour,...

Is Malaysia Entering a High Inflation Cycle? KUALA LUMPUR (March 25): Global inflationary pressures have risen in the eye of aperfect storm underpinned by supply disruptions, surging energy and...

water. State 1 2 3 4 st Using the T-s chart complete the following table of thermodynamic properties for T [C] 500 100 20 P [kPa] 2000 10,000 v [m3/kg] h [kJ/kg] 3445 Phase [Quality if Applicable]...

Lancer Audio produces a high-end DVD player that sells for $1,300.Total operating expenses for the past 12 months are as follows: Required a. Use regression analysis to estimate fixed and variable...

1 of 6 Business owners like to spread their insurance needs across many companies to protect themselves.TrueFalse

On January 1, the company purchased investment securities for $1,000. The securities are classified as trading. By December 31, the securities had a fair value of $100 but had not yet been sold....

In most developing countries, there are long lines of taxis at airports, and these taxis often wait two or three hours. What does this tell you about the price in that market? Demonstrate with supply...

ABCDE Technologies, Inc., designs, manufactures, and markets an extensive line of PC cards. The company sells its PC cards primarily to original equipment manufacturers (OEMs) for industrial and...

Quality Chicken grows and processes chickens. Each chicken is disassembled into five main parts. Information pertaining to production in July 2012 is: Joint cost of production in July 2012 was $50. A...

In 2004, Argentina imposed a 20 percent tax on natural gas exports. a. Demonstrate the likely effect of that tax on gas exports using supply and demand curves. b. What did it likely do to the price...

Create a 200 word summary on the Juvenile Justice System than and today. Describe The Juvenile system and provide a generalizable definition. Highlight the issues in the Juvenile system and why this...

According to Stout, what three changes in corporate law and practice played large roles in creating the new shareholder-centric reality"?

Why does Friedman believe that his view and Mackey's basically come to the same thing? Is he correct about this, or is Mackey right that they aren't the same?

What is the problem of "short-termism"?