New Jersey Raises Its Minimum Wage While Neighboring State Pennsylvania

question 88

Multiple Choice

New Jersey raises its minimum wage while neighboring state Pennsylvania, does not. Economists compared the labor market in both states to draw conclusions about the effect of a minimum wage on employment and wages. This is an example of:

• A) simulation economics.
• B) a natural experiment.
• C) an economic principle.
• D) the economic decision rule.

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Definitions:

Quarterly

Occurring every three months or four times a year, often used in reference to financial reports or payments.

Interest Rate

The proportion of a loan or savings amount paid as interest to the lender or paid to the saver, usually expressed as an annual percentage.

Compensation Strategy

A company’s plan or approach towards designing and implementing payment structures and benefits for its employees.

Formulating

The process of devising or developing strategies, plans, or policies.