If a Minimum Wage Is Set Above the Equilibrium Wage

question 12

Multiple Choice

If a minimum wage is set above the equilibrium wage rate, employment

• A) will increase.
• B) will not change.
• C) will decrease.
• D) may increase, decrease or not change depending on how the supply of labor is affected by the minimum wage.

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Definitions:

False Belief

Refers to the understanding that another person's belief may be different from one's own and may not reflect reality.

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The tendency, especially in young children, to focus on one aspect of a situation while neglecting others.

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An approach in psychology that examines how societal and cultural influences shape individual behavior, attitudes, and development.

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A concept in cognitive development theory referring to the difference between what a learner can do without help and what they can achieve with guidance and encouragement from a skilled partner.