A Number of States Have a Minimum Wage That Is

question 6

Multiple Choice

A number of states have a minimum wage that is higher than the federal minimum. In those states that impose such a minimum wage, it is more likely that the minimum wage acts as a binding:

• A) price floor, causing excess supply in the market.
• B) price floor, causing excess demand in the market.
• C) price ceiling, causing excess supply in the market.
• D) price ceiling, causing excess demand in the market.

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Definitions:

Normal Curve

A symmetrical, bell-shaped curve that represents the distribution of many types of data where most values cluster around a central mean.

Bell Curve

A graphical depiction of a normal distribution, showing how the frequency of an event's occurrence varies in relation to its deviation from the mean.

Population

The total number of individuals or organisms residing within a particular geographical area or belonging to a specific category.

Mental Age

An assessment measure that reflects the mental ability of an individual expressed in the age at which normal individuals reach an equivalent level of performance.