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.