When the Minimum Wage Is Set Below the Market Equilibrium

question 112

True/False

When the minimum wage is set below the market equilibrium wage,it does not affect the market.

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Definitions:

Negative Feedback

A regulatory mechanism in which a stimulus causes an opposite output in order to maintain an ideal level of whatever is being regulated.

Stimulus

Anything that can provoke a response in an organism or part of the body.

Pleural Cavity

The thin fluid-filled space between the two pulmonary pleurae (visceral and parietal) of each lung, involved in respiratory mechanics.

Thoracic Cavity

The body cavity located in the chest, containing the lungs, heart, and other thoracic organs.