A Minimum Wage Is Said to Be Binding If

question 78

Multiple Choice

A minimum wage is said to be binding if

• A) it is set above the market wage that would otherwise prevail.
• B) it is the lowest wage that allows a level of income above the poverty line.
• C) it is set below the market wage that would otherwise prevail.
• D) it has been set by collective bargaining.
• E) all workers who desire employment at that wage are in fact employed.

---

Definitions:

Budget Constraint

The limits imposed on household choices by income, wealth, and product prices, affecting the combination of goods and services they can afford.

Point D

A reference to a specific point on a graph or chart, often used to denote a particular set of conditions or coordinates in economic analysis.

Available Option

Choices or alternatives that are accessible and can be chosen in a decision-making process.

Price

Price refers to the amount of money expected, required, or given in payment for something.