Assume That a Minimum Wage Is Created and Imposed Above

question 155

Multiple Choice

Assume that a minimum wage is created and imposed above the equilibrium wage in an otherwise perfectly competitive labor market.Which of the following will NOT occur as a result of this new law?

• A) The quantity of labor seeking jobs will rise.
• B) The unemployment rate will rise.
• C) The level of employment will increase.
• D) None of the above will occur.

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Definitions:

Judiciary Act of 1789

The Judiciary Act of 1789 was a landmark statute enacted by the first United States Congress that established the federal judiciary of the United States.

Second Amendment

An amendment to the United States Constitution that protects the right of the people to keep and bear arms.

Well-Regulated Militia

historically refers to a group of citizens organized for military service in order to provide for the common defense, as mentioned in the Second Amendment.