Refer to the information provided in Figure 13.1 below to answer the questions that follow. Figure 13.1
-Refer to Figure 13.1. According to classical economists, if the wage rate is $15 the wage rate will ________ to eliminate the ________.

Question

Refer to the information provided in Figure 13.1 below to answer the questions that follow.  Figure 13.1
-Refer to Figure 13.1. According to classical economists, if the wage rate is $15 the wage rate will ________ to eliminate the ________.

Quizplus · Accepted Answer

According to classical economists, if the wage rate is $15, there will be a surplus of workers (unemployment) as the supply of labor exceeds the demand for labor. To eliminate this surplus, the wage rate needs to decline to make it more attractive to employers to hire more workers. Therefore, the correct choice is A.

Refer to the Information Provided in Figure 13