If the Minimum Wage Law Sets a Price Floor Above

question 96

Multiple Choice

If the minimum wage law sets a price floor above the equilibrium wage in the market for unskilled labor,then the

• A) minimum wage will create a surplus of unskilled labor.
• B) minimum wage will create a shortage of unskilled labor.
• C) minimum wage will not impact the unskilled labor market.
• D) unskilled labor market will change,but we cannot be certain how.

---

Definitions:

Varied

Characterized by diversity or difference; not uniform or consistent.

Federal Legislation

Laws passed by the federal government of a country, which apply to all regions and individuals within that country.

Constitutional Rights

Fundamental rights protected by the constitution, including freedom of speech, religion, and the right to fair treatment under the law.

Authoritative Person

An individual recognized or accepted as being in a position of authority or possessing a high level of knowledge and expertise in a particular field.