If the Minimum Wage Is Lowered and Closer to the Market

question 102

Multiple Choice

If the minimum wage is lowered and closer to the market level, the:

• A) gains from trade would decrease, compared to a higher minimum wage.
• B) gains from trade would increase, compared to a higher minimum wage.
• C) lost gains from trade would increase, compared to a higher minimum wage.
• D) deadweight loss would increase, compared to a higher minimum wage.

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Definitions:

Receptor Cells

Specialized cells in the body that convert external stimuli into electrical signals for the nervous system to process.

Cones

Retinal receptor cells that are concentrated near the center of the retina and that function in daylight or in well-lit conditions. The cones detect fine detail and give rise to color sensations.

Periphery

The external boundary or surface of an area or object, or those areas that lie beyond the central or main part.

Dilation

The process of expansion or widening in size, often referring to the enlargement of the pupil or blood vessels.