A Minimum Wage Set Above the Equilibrium Wage Rate Is

question 75

Multiple Choice

A minimum wage set above the equilibrium wage rate is a price ________ that ________ the quantity of low-skilled labor demanded.

• A) ceiling; decreases
• B) ceiling; increases
• C) floor; decreases
• D) floor; increases

---

Definitions:

Majority Owner

A majority owner refers to an individual or entity that holds more than 50% of a company's shares, thereby having significant control and decision-making power within the company.

Board of Directors

A group of individuals elected to represent shareholders and make major decisions concerning the corporation, including company policy, and director oversight.

Preferred Shares

Preferred shares represent ownership in a company with preferential rights to dividends and assets upon liquidation, compared to common shares.

Doctrine of Ultra Vires

A principle stating that actions taken by a corporation that are beyond its legal power or authority are invalid.