Author Question: If the minimum wage law is repealed and employers begin using efficiency wages far less frequently, ... (Read 178 times)

jwb375 · **on:** Jun 30, 2018

If the minimum wage law is repealed and employers begin using efficiency wages far less frequently, it would ___ unemployment and ____ the natural rate of unemployment:
a. Increase; increase.
b. Increase; not change.
c. Decrease; decrease.
d. Decrease; not change.

Question 2

If a minimum wage law is passed imposing a price floor above the equilibrium price of unskilled labor and employers increasingly used efficiency wages, it would ___ unemployment and ____ the natural rate of unemployment:
a. Increase; increase.
b. Increase; not change.
c. Not change, increase.
d. Do none of the above.