A Minimum Wage Law (That Sets the Minimum Wage Above

question 3

Multiple Choice

A minimum wage law (that sets the minimum wage above the equilibrium wage) can be expected to

• A) clear the market for unskilled workers.
• B) increase the number of unskilled workers employed.
• C) increase the number of firms in those industries where the law is effective.
• D) reduce the number of unskilled workers employed and/or reduce the number of hours worked by unskilled workers.
• E) all of the above

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Definitions:

Elements of Causation

Fundamental components required to establish a cause-and-effect relationship in a legal context, typically including direct cause, foreseeability, and harm.

Proximate Cause

The primary cause that in a natural and continuous sequence, unbroken by any efficient intervening cause, produces an event and without which the event would not have occurred.

Cause in Fact

A legal principle that establishes an event as the direct cause of an injury, required for proving negligence.

Res Ipsa Loquitur

A doctrine in tort law that infers negligence from the very nature of an accident or injury, in the absence of direct evidence on how any defendant behaved.