Which of the Following Is a Correct Statement About a Minimum

question 147

Multiple Choice

Which of the following is a correct statement about a minimum wage law?

• A) It reduces costs for employers.
• B) It ensures that anyone who wants a job can get a job with a high enough wage.
• C) It causes prices to rise as producers pay more for labor.
• D) It is a price ceiling law that makes wages higher than the market equilibrium price.
• E) It is a price floor law that forces wages to be lower than the market equilibrium price.

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Definitions:

Standard Normal

A type of normal distribution with a mean of 0 and a standard deviation of 1.

Area

In mathematics, the extent of a two-dimensional surface within a boundary, measured in square units.

Probability Density

A function that describes the relative likelihood for a continuous random variable to occur at a specific point.

Normally Distributed

A statistical distribution that is symmetric about the mean, showing that data near the mean are more frequent in occurrence than data far from the mean.