A Minimum Wage Set Above the Equilibrium Wage Rate Is

question 93

Multiple Choice

A minimum wage set above the equilibrium wage rate is a price

• A) floor that results in a shortage of low- skilled labour.
• B) floor that results in a surplus of low- skilled labour.
• C) ceiling that results in a shortage of low- skilled labour.
• D) ceiling that results in a surplus of low- skilled labour.

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Definitions:

Social Loafing

Each person’s tendency to exert less effort in a group because of reduced accountability for individual effort.

Group Polarization

The tendency for a group's prevailing attitudes or beliefs to become more extreme after discussing them as a group.

Social Facilitation

Improvement in an individual’s performance because of the presence of others.

Solomon Asch

A psychologist best known for his research on group conformity and social pressure influencing individuals' judgments and perceptions.