Question 1
The minimum wage law contributes to a
◦ lower unemployment rate among teenaged workers.
◦ lower unemployment rate among adult workers.
◦ higher unemployment rate among high skilled workers.
◦ higher unemployment rate among teenaged workers.
Question 2
Refer to the information provided in Figure 28.3 below to answer the question(s) that follow.
Refer to Figure 28.3. A minimum wage of $12
◦ will lead to unemployment of 10.
◦ will lead to unemployment of 20.
◦ will lead to unemployment of 40.
◦ will have no effect because the minimum wage is set above the equilibrium wage and for a minimum wage to have any effect on the labor market it must be below the equilibrium wage.
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