If the Minimum Wage Is Set Below the Equilibrium Wage

question 4

Multiple Choice

If the minimum wage is set below the equilibrium wage, the minimum wage:

• A) will have a large effect on the market.
• B) is nonbinding.
• C) would interfere with the market reaching equilibrium.
• D) will likely affect government jobs more than any other job market.

---

Definitions:

Conscious Mind

The part of the mind’s activities of which one is aware.

Oral Stage

In psychoanalytic theory, the stage of psychosexual development, from birth to about 18 months of age, during which the physical focus of the libido is located in the mouth, lips, and tongue.

Psychological Theme

Underlying patterns or ideas that are common in psychological theory or practice, guiding understanding of human thoughts, feelings, and behaviors.

Dependency

A state of relying on or being controlled by someone or something else for support, subsistence, or decision making.