When the Minimum Wage Is Raised in a Competitive Market,ceteris

question 27

Multiple Choice

When the minimum wage is raised in a competitive market,ceteris paribus,

• A)All workers are better off.
• B)All workers are worse off.
• C)Some workers are better off and some are worse off.
• D)Workers are not affected by a minimum wage increase,only by decreases.

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Definitions:

Labor-saving

Technologies or methods that decrease the amount of work required to produce goods or services, often leading to increased efficiency.

Marginal Productivity

The additional output that results from using one more unit of a factor, holding all other inputs constant.

Labor-saving

Technologies or methods that reduce the amount of work required to produce goods or services, often leading to increased efficiency and productivity.

Competitive Firm

A company operating in a market where it has little to no influence over the price of its product or service, typically due to the presence of many other firms offering similar products.