If the average wage is $9 in country X and $8 in country Y and both countries have similar elasticities of labor supply and demand, then a minimum wage of $4 in both countries will tend to
A) make unemployment higher in country X than in country Y.
B) make unemployment higher in country Y than in country X.
C) make unemployment the same in both countries.
D) have no effect in either country.
Correct Answer:
Verified
Q7: Individuals who have given up looking for
Q9: The presence of discouraged workers causes the
Q16: Discouraged workers and underemployed workers are examples
Q28: Frictional unemployment is best defined as:
A) long-term
Q39: The persistent,long-term unemployment caused by long-lasting shocks
Q42: Structural unemployment is more persistent in France
Q44: (Figure: Labor Supply and Demand) Figure: Labor
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents