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The Table Above Gives the Labor Market for a Small

Question 108

Multiple Choice

 Real wage rate  Quantity of labor demanded  Quantity of labor supplied  (2005 dollars  (millions of hours  (millions of hours  per hour)   per month)   per month)  7.1590257.6570328.0060608.5045709.002085\begin{array}{lll}\hline\text { Real wage rate }&\text { Quantity of labor demanded }&\text { Quantity of labor supplied }\\\text { (2005 dollars } & \text { (millions of hours } & \text { (millions of hours } \\\text { per hour) } & \text { per month) } & \text { per month) }\\\hline 7.15 & 90 & 25 \\7.65 & 70 & 32 \\8.00 & 60 & 60 \\8.50 & 45 & 70 \\9.00 & 20 & 85 \\\hline\end{array}
The table above gives the labor market for a small foreign economy
-The table above gives the labor market for a small foreign economy. A(n) -------------would create-------------
.


A) efficiency wage of $8.00; unemployment and job rationing.
B) minimum wage of $9.00; a decrease job search.
C) efficiency wage of $9.00; an increase in job rationing.
D) minimum wage of $5.00; an increase in job rationing.
E) union-negotiated wage of $7.50; unemployment and job rationing.

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