If the Government Sets a Minimum Wage for Workers That

question 31

Multiple Choice

If the government sets a minimum wage for workers that is above the competitive wage,

• A) Unemployment would decrease through a disemployment effect.
• B) Wages would fall as firms try to reduce labour costs.
• C) The total wage bill must fall.
• D) Unemployment would increase through a disemployment effect.
• E) The total wage bill must rise.

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Definitions:

Managerial Abuse

Involves inappropriate or unethical behavior by managers towards their subordinates, including exploitation, discrimination, or harassment.

Objective Standards

Benchmarks or criteria that are based on facts and are impartial, allowing for fair assessment or decision-making.

Managerial Insistence

The practice where management steadfastly maintains or enforces its policies, decisions, or authority, sometimes at odds with employee or union preferences.

Production Technology

The methods, tools, and equipment used in the production of goods and services.