A Minimum Wage Law (That Sets the Minimum Wage Above

question 10

Multiple Choice

A minimum wage law (that sets the minimum wage above the equilibrium wage) can be expected to

• A) clear the market for unskilled workers.
• B) increase employment for unskilled workers.
• C) increase the number of firms in those industries where the law is effective.
• D) reduce the hours worked for some unskilled workers.
• E) all of the above

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Definitions:

Future Earnings

The expected amount of money that an individual or entity will receive for its labor or investments in the future.

Chronic Illness

A long-lasting health condition that requires ongoing medical attention or limits daily activities.

Gender Discrimination

The unfair treatment or bias against individuals based on their gender, affecting opportunities, resources, and rewards.

Geographical Imobility

Refers to the hindrance or difficulty in moving factors of production like labor or capital between different geographical locations.