If the Minimum Wage Increased, Then at Any Given Rate

question 178

Multiple Choice

If the minimum wage increased, then at any given rate of inflation

• A)both output and employment would be higher.
• B)neither output nor employment would be higher.
• C)output would be higher and unemployment would be lower.
• D)output would be lower and unemployment would be higher.

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Definitions:

Self-Sufficiency

The ability of an individual, community, or nation to provide for all of its needs without external assistance.

Economic Interaction

Economic interaction involves the exchange of goods, services, and resources among individuals, businesses, and governments within and across economies.

Comparative Advantage

The ability of an individual, firm, or country to produce a good or service at a lower opportunity cost than other competitors.

Absolute Advantage

The ability of an entity to produce a good or service more efficiently (using fewer resources or generating higher output) than another entity.