Why Is Raising the Minimum Wage Generally Ineffective

question 14

Multiple Choice

Why is raising the minimum wage generally ineffective?

• A) Most employers purchase labor on the black market,where the binding price floor is not present.
• B) The minimum wage is an amount suggested by the government,and employers are under no obligation to pay their employees the suggested basic wage.
• C) The minimum wage is usually set below the prevailing equilibrium wage and is frequently nonbinding.
• D) Employees are often unconcerned with their wages and care more about the benefits that come with the job.
• E) Most employees who hold low-wage jobs work in the black market,where the binding price floor doesn't exist.

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Definitions:

Existentialism

A philosophical theory emphasizing individual existence, freedom, and choice, positing that individuals create the meanings of their lives.

Independent Variable

A variable that is manipulated in an experiment to see if it affects the outcome or dependent variable.

Dependent Variable

In scientific research, the variable that is tested and measured to determine if it is affected by changes in the independent variable.

Self-critical

A tendency to evaluate oneself harshly, focusing on one’s flaws and shortcomings.