The Minimum Wage Is an Ineffective Antipoverty Measure for All

question 70

Multiple Choice

The minimum wage is an ineffective antipoverty measure for all EXCEPT which of the following reasons?

• A) The wage ceiling created by minimum wage laws falls below the equilibrium price,producing a shortage of labor.
• B) The wage mandated by law often exceeds the value created by low-skill workers,resulting in a move away from labor-intensive processes.
• C) The wage floor created by minimum wage laws lies above the equilibrium price,producing a surplus of labor.
• D) Increased wages can force small businesses,who are less able to adapt to changes in costs,to close their operations,reducing the total quantity of jobs.
• E) An increase in wages may cause employees to lose working hours,resulting in a net change in pay that is negative.

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Definitions:

Counterconditioning

A behavioral therapy technique that involves teaching the subject to associate a positive response with a stimulus that previously elicited a negative response.

Reciprocal Inhibition

Wolpe’s term for the idea that only one emotional state can be experienced at a time.

Sensory Disinhibition

The reduction of inhibitory signals in the nervous system, leading to an increase in sensory experiences.

Sensory Preconditioning

The initial pairing of two stimuli, which will enable one of the stimuli (CS2) to elicit the conditioned response (CR) without being paired with an unconditioned stimulus (UCS) if the other stimulus (CS1) is paired with UCS.