If the Minimum Wage Exceeds the Equilibrium Wage,then

question 3

Multiple Choice

If the minimum wage exceeds the equilibrium wage,then

• A)the quantity demanded of labor will exceed the quantity supplied.
• B)the quantity supplied of labor will exceed the quantity demanded.
• C)the minimum wage will not be binding.
• D)there will be no unemployment.

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Definitions:

Loan Balance

The amount of money that remains to be paid on a loan.

Student Loans

Money borrowed to pay for education expenses, which must be repaid with interest.

Principal

The initial sum of money borrowed in a loan or put into an investment, exclusive of any interest or dividends.

Student Loans

Loans offered to students to help cover post-secondary education expenses, which typically have favorable interest rates compared to other types of loans.