One Reason Why an Increase in the Minimum Wage May

question 111

Multiple Choice

One reason why an increase in the minimum wage may result in increased employment is that

• A)the government prohibits firms from laying-off affected workers
• B)the supply of labor sometimes falls as a result of the higher minimum wage
• C)all wages rises by the same percent that the minimum wage rises
• D)employers react to the higher minimum wage by substituting part-time jobs for full-time jobs
• E)employers react to the higher minimum wage by substituting full-time jobs for part-time jobs

Understand the concept of excess demand (shortage) and excess supply (surplus) in unregulated markets and predict market adjustments.

Recognize the role of normal goods, inferior goods, and factors like income and price changes on market dynamics.

Interpret graphical representations of market shifts and the implications for equilibrium.

Apply principles of supply and demand to real-world scenarios, such as changes in consumer preference or production costs.

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Definitions:

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A system of political beliefs that advocates for radical, often fundamental, change to the existing government or society structure.

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The process of implementing significant changes in educational policies, practices, and structures to improve the effectiveness and equity of schooling.

Judith Sargent Murray

An early American advocate for women's rights and education, who argued for gender equality and wrote extensively on the matter in the late 18th century.