The Employment Effect of a Minimum Wage Increase Is Greater

question 102

Multiple Choice

The employment effect of a minimum wage increase is greater the

• A)more elastic the demand for labor.
• B)less elastic the demand for labor.
• C)more the wage ceiling shifts the supply curve.
• D)more the wage floor shifts the demand curve.

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Definitions:

Apparent Agency

The legal doctrine that allows a third party to hold a principal liable for the acts of an agent, where the principal has given the appearance of agency.

Ratification

The process by which someone gives formal consent or approval to something, often a legal or contractual agreement.

Faithless Servant Doctrine

A legal principle that allows employers to recover compensation paid to an employee who has acted disloyally or in breach of contract.

Defendant Compensation

Financial or other forms of reparation awarded to a defendant, typically in civil lawsuits where the defendant may counter-claim against the plaintiff.