Microeconomics (13th Edition)
13th Edition
ISBN: 9780134744476
Author: Michael Parkin
Publisher: PEARSON
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Question
Chapter 6.2, Problem 4RQ
To determine
The reason for the minimum wage to create an inefficient allocation of labor resources.
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Students have asked these similar questions
Economic theory suggests that an increase in the minimum wage will prompt firms to hire fewer low skill workers. true or false
According to the Heritage Foundation report, what are two possible negative effects of an increase in the minimum wage
If the minimum wage is set
A.
equal to the equilibrium wage, it will create a shortage of labor.
B.
equal to the equilibrium wage, it will create a surplus of labor.
C.
below the equilibrium wage, it will create unemployment.
D.
below the equilibrium wage, it will create a shortage of labor.
E.
above the equilibrium wage, it will create unemployment.
Chapter 6 Solutions
Microeconomics (13th Edition)
Ch. 6.1 - Prob. 1RQCh. 6.1 - Prob. 2RQCh. 6.1 - Prob. 3RQCh. 6.1 - Prob. 4RQCh. 6.2 - Prob. 1RQCh. 6.2 - Prob. 2RQCh. 6.2 - Prob. 3RQCh. 6.2 - Prob. 4RQCh. 6.2 - Prob. 5RQCh. 6.3 - How does the elasticity of demand influence the...
Ch. 6.3 - Prob. 2RQCh. 6.3 - Prob. 3RQCh. 6.3 - Prob. 4RQCh. 6.3 - Prob. 5RQCh. 6.4 - Prob. 1RQCh. 6.4 - Prob. 2RQCh. 6.4 - Prob. 3RQCh. 6.4 - Prob. 4RQCh. 6.4 - Prob. 5RQCh. 6.5 - Prob. 1RQCh. 6.5 - Prob. 2RQCh. 6.5 - Prob. 3RQCh. 6.5 - Prob. 4RQCh. 6 - Prob. 1SPACh. 6 - Prob. 2SPACh. 6 - Prob. 3SPACh. 6 - Prob. 4SPACh. 6 - Taxes (Study Plan 6.3) 5.The table in the next...Ch. 6 - Prob. 6SPACh. 6 - Prob. 7SPACh. 6 - Prob. 8SPACh. 6 - Prob. 9APACh. 6 - Prob. 10APACh. 6 - Prob. 11APACh. 6 - Prob. 12APACh. 6 - Prob. 13APACh. 6 - Prob. 14APACh. 6 - Prob. 15APACh. 6 - Prob. 16APACh. 6 - Prob. 17APACh. 6 - Prob. 18APACh. 6 - Prob. 19APACh. 6 - Prob. 20APACh. 6 - Prob. 21APACh. 6 - Prob. 22APACh. 6 - Prob. 23APA
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- Do firms respond differently in the long run to a change in the minimum wage if minimum wage workers are considered normal inputs or inferior inputs into the production process? Fully explain your answer.arrow_forwardExplain the pros and cons of imposing a minimum wage in a country and illustrate your arguments by using a graph for labor market (number of employees on the horizontal axis and the level of wage on the vertical axis).arrow_forwardCritics of raising the minimum wage argue that A. minimum-wage laws are too expensive for local governments to administer. B. labor demand is inelastic so firms can adjust production. C. minimum-wage laws are imprecise in their ability to help the working poor. D. effective minimum-wage laws create a shortage of labor.arrow_forward
- When the minimum wage is set above the equilibrium market wage, there will be an excess demand for labor at the minimum wage. it will have no effect on the quantity of labor employed. there will be an excess supply of labor at the minimum wage. the quality of the labor force will rise.arrow_forwardDiscuss minimum wage legislation within the backdrop of the Sustainable Development Goals on employment and indicate whether minimum wages are justifiable or not.arrow_forwardWhich of the following is the most likely result of an increase in the minimum wage? a.a decrease in the employment of unskilled workers b.an increase in the demand for unskilled workers c.a decrease in the number of workers seeking minimum wage jobs d.an increase in the employment of unskilled workersarrow_forward
- Is the minimum wage a good policy? Should the government increase the minimum wage or maintain it at its current rate or abolish it altogether.arrow_forwardThe minimum wage is typically set above the market-clearing wage in the market for labor. Using a graph with an upward-sloping supply of labor, a downward-sloping demand for labor, with the quantity of labor measured on the horizontal axis and the wage rate on the vertical axis, show the effect on the labor market of a minimum wage set above the equilibrium wage rate. Note:- Do not provide handwritten solution. Maintain accuracy and quality in your answer. Take care of plagiarism. Answer completely. You will get up vote for sure.arrow_forwardIf the minimum wage is set below the equilibrium wage rate, then the following will hold true: A) Wages will automatically increase in the market. B) There will be excess demand for labour in the market. C) The implementation of a minimum wage will have no impact. D) There will be an excess supply of labour in the market.arrow_forward
- When a minimum-wage law forces the wage to remain above the equilibrium level, the result is a. both a shortage of labor and a shortage of jobs b. a shortage of labor and surplus of jobs c. a surplus of labor and a shortage of jobs d, both surplus of labor and a surplus of jobsarrow_forwardWhich of the following is an example of an efficiency wage? a. A higher wage paid to a more experienced worker b. A below-equilibrium wage paid by a small business exempt from minimum-wage laws c. An above-equilibrium wage paid by a firm to reduce turnover costs. d. A wage tied to participation in a government-sponsored job training programarrow_forwardIf the minimum wage is set above the equilibrium wage, the quantity of labor supplied by workers is ______ to the quantity demanded by employers. 1. Lower 2. Same 3. Minor 4. Superiorarrow_forward
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