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2016-11-28
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In a perfectly competitive economy,workers are well-informed and firms can monitor workers. Suppose the governmentthen passes a "Worker Privacy Act" that makes it very expensive tomonitor workers. Which of the following is most likely to occur?

A) Employment and wages will fall.

B) Employment will fall but the effecton wages is uncertain.

C) Employment and wages will rise.

D) Wages will rise but the effect onemployment is uncertain.


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