A Binding Minimum Wage Established by the Government

question 34

Multiple Choice

A binding minimum wage established by the government

• A)is essentially a price ceiling that creates a shortage of workers.
• B)will be effective only if the minimum wage is set below the free-market equilibrium wage.
• C)will have no effect on the quantity of labour employed.
• D)will affect adversely only those workers whose value of productivity is greater than this minimum wage.
• E)is a price floor that will create a surplus of workers if the labour market is competitive.

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Definitions:

Slot Machine

A gambling device that creates a game of chance for its players, featuring reels that spin and symbols that align to determine outcomes.

Reward

A beneficial outcome, object, or stimulus given in response to desired behavior, which serves to reinforce or increase the likelihood of the behavior's recurrence.

Negative Reinforcement

A behavioral concept where the removal of an unfavorable stimulus following a response increases the likelihood of that response being repeated in the future.

Aversive Stimulus

A type of stimulus that is unpleasant or unwanted, and can lead to changes in behavior when it is used as a consequence.