One Way to Remove the Excess Labor Supply Problem from a Minimum

question 36

Multiple Choice

One way to remove the excess labor supply problem from a minimum wage policy is to have the government hire all unemployed workers at the minimum wage. What is the key drawback of this version of a minimum wage policy?

• A) The deadweight loss may increase substantially.
• B) The cost to the government may be very large.
• C) Consumer surplus losses increase further.
• D) A and B are correct.
• E) B and C are correct.

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Construction Industry Institute

An organization or consortium focused on improving the construction industry through research, best practices, and collaboration.

Criterion

A principle or standard by which something may be judged or decided.

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A professional responsible for planning, executing, and closing projects, ensuring goals are met within constraints like budget and time.

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