If Minimum Wage Legislation Does Not Cause Unemployment, Then

question 7

Multiple Choice

If minimum wage legislation does not cause unemployment, then:

• A) minimum wage workers will benefit.
• B) firms will earn higher profits.
• C) the minimum wage must have been set above the equilibrium wage in the labor market.
• D) the government should increase unemployment benefits.

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Definitions:

Information Search

The process by which individuals gather data and details about a product or service before making a purchase decision.

Evaluative Criteria

Standards or benchmarks that are used to judge the quality or value of something, often applied in decision-making processes or assessments.

Objective Attributes

Measurable or factual features of a product or service, such as size, weight, or speed, which can be directly observed and quantified.

Subjective Attributes

Characteristics or features of a product or service that are based on personal opinions, tastes, or feelings rather than objective measures.