Assume the Minimum Wage Exceeds the Market-Clearing Wage

question 48

Multiple Choice

Assume the minimum wage exceeds the market-clearing wage. If there is an increase in the supply of labor then the number of workers who are unemployed will ________, and the number of workers who are employed will ________.

• A)increase; increase
• B)increase; decrease
• C)increase; not change
• D)decrease; increase

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Definitions:

Consolidated Buildings

The combined value of all buildings and related facilities owned by a company as presented in its consolidated financial statements.

Common Stock

A type of equity security that represents ownership in a corporation, entitling the holder to a share of the company's success through dividends and capital appreciation.

Acquisition Transaction

A financial and business deal where one company purchases a portion or all of another company's shares or assets, effectively gaining control or significant influence over the target company.