When a Minimum-Wage Law Forces the Wage to Remain Above

question 344

True/False

When a minimum-wage law forces the wage to remain above the level that balances supply and demand, there are more workers willing to work than there are jobs, so some workers are unemployed.

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Definitions:

World Price

The international price at which goods are traded between countries, affecting domestic markets.

No-Trade Prices

Prices at which market participants are not willing to trade, indicating either a lack of demand at higher prices or a lack of supply at lower prices.

Trade Barriers

Policies or regulations imposed by governments to limit the free exchange of goods and services across countries, including tariffs and quotas.

Dumping

The practice of selling goods in a foreign market at a price below their production cost or domestic price, often to gain market share or eliminate competition.