Empirical Evidence on the Practical Importance of Minimum Wage Laws

question 13

Multiple Choice

Empirical evidence on the practical importance of minimum wage laws suggests:

• A) that their impact on the employment level is nil.
• B) that their impact on employment is actually favourable because they put more money in the hands of poorly paid workers, stimulating consumer spending, thus promoting economic growth.
• C) that they do reduce the employment levels of younger and unskilled workers to a minor extent - a weak disemployment effect.
• D) that they succeed in raising the incomes of poor households.
• E) that they do reduce the employment levels of younger and unskilled workers to a major extent - a strong disemployment effect.

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Definitions:

Deceptive Advertising

Marketing practices that mislead or deceive consumers into believing something about a product or service that is not true or fully disclosed.

Celler-Kefauver Act

A United States antitrust law passed in 1950, aimed at preventing anti-competitive mergers and acquisitions by closing loopholes in the earlier Clayton Antitrust Act.

Clayton Act

A United States antitrust law enacted in 1914, aimed at promoting competition by preventing unfair business practices such as price discrimination and exclusive dealings.

Sherman Act

A landmark federal statute in the field of U.S. antitrust law aimed at prohibiting monopolistic practices and promoting competition.