Why Do Some Workers Lose Their Jobs When the Minimum

question 93

Multiple Choice

Why do some workers lose their jobs when the minimum wage is increased?

• A) The supply of labour decreases.
• B) The demand for labour is perfectly elastic.
• C) The increase in labour costs decreases the supply of the product, thereby raising the price of the good so that the equilibrium quantity decreases to zero.
• D) The demand for labour is perfectly inelastic.
• E) The increase in the minimum wage decreases the quantity of labour demanded.

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Definitions:

Remedies of Damages

Legal means to recover compensation or rectify harm caused by breaches of contract, torts, or other legal infringements.

Concealment

Concealment involves hiding or withholding information that should otherwise be disclosed, often with the intent to defraud or deceive.

Negligent Misrepresentation

A false statement made carelessly that induces someone to act to their detriment, creating legal liability.

Sales Puffery

Exaggerated or boastful statements about a product or service that are not meant to be taken literally and are thus not legally binding promises or warranties.