If Policy Makers Believe That the Equilibrium Wage Rate Is

question 78

Multiple Choice

If policy makers believe that the equilibrium wage rate is too low, policy makers can raise wages by legislating a minimum wage, that is, a wage

• A) ceiling above the equilibrium wage.
• B) ceiling below the equilibrium wage.
• C) floor above the equilibrium wage.
• D) floor below the equilibrium wage.

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Definitions:

Syllogism

A form of deductive reasoning that arrives at a conclusion based on two premises, where each shares a common term.

Premise

A statement or idea that is accepted as a truth and serves as the basis for an argument or reasoning.

Conclusion

The statement that follows logically from the premises in an argument.

Distribution Requirements

The specific courses or subject areas students must complete to fulfill the breadth of knowledge required for a degree.