When a Minimum Wage Is Set Above the Equilibrium Wage

question 37

Multiple Choice

When a minimum wage is set above the equilibrium wage rate,

• A) unemployment increases.
• B) the supply of low- skilled workers decreases and the supply curve shifts rightward.
• C) the supply of low- skilled workers increases and the supply curve shifts leftward.
• D) search activity decreases.

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Definitions:

Outliers

Observations in data that are significantly higher or lower than the other values.

Research Methodology

A systematic approach outlining the steps and techniques used for conducting research.

Distribution Scores

Represents how values in a set of data are spread across different categories or intervals.

Outliers

Observations that are significantly distant from the other observations in a data set, potentially indicating a measurement error or a different population.