Which of the following statements about a legislated minimum wage is true?
A) It will have no effect if the market is monopsonistic.
B) In a monopsonistic labour market,(if effective) it may increase wage rates but it must decrease employment.
C) In a competitive labour market,(if effective) it may increase wages and will increase employment.
D) In a monopsonistic labour market,if set equal to the competitive wage,will increase wages and employment.
E) It will have the same wage and employment effects in competitive and monopsonistic labour markets.
Correct Answer:
Verified
Q24: The diagram below shows the supply and
Q25: FIGURE 14- 2 Q26: All of the following are classified as Q27: The general theme of the "good jobs- Q28: If a wage- setting union enters a Q30: Unions currently represent government employees in Canada. Q31: With regard to the "good jobs- bad Q32: Suppose a labour union enters a competitive Q33: FIGURE 14- 6 Q34: FIGURE 14- 1 Suppose an island economy
A)approximately
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