If the Minimum Wage Law Sets a Wage Floor Below

question 61

Multiple Choice

If the minimum wage law sets a wage floor below the equilibrium wage in the market for unskilled labor,then the

• A) minimum wage will create a surplus of unskilled labor.
• B) minimum wage will create a shortage of unskilled labor.
• C) minimum wage will not impact the unskilled labor market.
• D) unskilled labor market will change,but we cannot be certain how.

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Definitions:

Eclectic View

An approach that combines methods and theories from various schools of thought to address psychological issues.

Psychologists

Professionals who study mental processes and behavior in humans and animals through observation, experimentation, and analysis.

Cultural Personality

How culture affects personality traits and behaviors, acknowledging that different cultures can lead to variations in personality across populations.

Hofstede

A framework for cross-cultural communication, developed by Geert Hofstede, that analyzes cultural dimensions and their impact on behavior in different societies.