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Figure: Wage Subsidy
-(Figure: Wage Subsidy) Refer to the figure. If a minimum wage of $8 had been implemented instead of a wage subsidy, how many workers would have been unemployed?
A) 60
B) 30
C) 180
D) 120

Question

Use the following to answer questions:
Figure: Wage Subsidy 
-(Figure: Wage Subsidy) Refer to the figure. If a minimum wage of $8 had been implemented instead of a wage subsidy, how many workers would have been unemployed?
A) 60 
B) 30 
C) 180 
D) 120

Quizplus · Accepted Answer

A minimum wage of $8 would create a surplus of labor, where the quantity of labor supplied exceeds the quantity of labor demanded. The difference between the two quantities at the $8 wage level is 60 workers, indicating 60 workers would be unemployed.

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