If a Minimum Wage Is Introduced That Is Above the Equilibrium

question 50

Multiple Choice

If a minimum wage is introduced that is above the equilibrium wage rate,

• A) the supply of labour increases and the supply of labour curve shifts rightward.
• B) job-search activity increases.
• C) unemployment decreases because more workers accept jobs at the higher minimum wage rate.
• D) the quantity of labour demanded increases.
• E) the quantity of labour supplied decreases because of the increase in unemployment.

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Definitions:

Initiate Work

The act of starting or setting in motion tasks or activities that contribute to achieving objectives.

Job Rotation

A workplace strategy where employees rotate between different jobs or tasks to learn new skills and gain exposure to different aspects of an organization.

Job Enlargement

The process of adding more tasks or duties to a job to provide variety and encourage skill development, without necessarily increasing responsibility.

Psychological Empowerment

A motivational state characterized by an individual's perception of having control, competence, meaningfulness, and impact at work.