Many Economists Are Critical of the Minimum Wage Because They

question 55

Multiple Choice

Many economists are critical of the minimum wage because they believe that it

• A) hurts the efforts of labor unions.
• B) reduces the number of available job opportunities.
• C) conflicts with policies designed to equalize the distribution of income.
• D) causes labor shortages in affected markets.

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Definitions:

Asset Demand

Holding money as a store of value instead of other assets such as stocks, bonds, savings accounts, certificates of deposit, or gold.

GDP

Stands for Gross Domestic Product, which is the total monetary or market value of all the finished goods and services produced within a country's borders in a specific time period.

M

The money supply—currency, checking deposits, and check-like deposits (identical to M1).

Real GDP

Gross Domestic Product adjusted for inflation, which provides a more accurate reflection of an economy's size and growth rate over time.