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If There Is a Floor on Wages Created by a Minimum

Question 25

Multiple Choice

If there is a floor on wages created by a minimum wage, union contracts, or other factors, then a decline in the marginal productivity of low-skilled workers will ________ the demand for low-skilled workers and ________ the number of unemployed workers.


A) increase; increase
B) increase; decrease
C) decrease; decrease
D) decrease; increase

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