Workers with High Levels of Skill and Experience Are Not

question 37

Multiple Choice

Workers with high levels of skill and experience are not affected by the minimum wage because:

• A)they belong to unions
• B)they are not legally guaranteed the minimum wage
• C)they generally earn wages less than the minimum wage
• D)their equilibrium wages are well above the minimum wage

---

Definitions:

Rebated Money

Funds that are returned to a payer, often as a discount or refund, after a purchase or payment has been made.

Taxpayer Reasoning

The thought process individuals use to evaluate the benefits and costs of paying taxes relative to the services and goods provided by the government.

Income Effect

The alteration in consumption habits of a person or the economy caused by a variation in real income.

Substitution Effect

A shift in buying habits resulting from changes in the comparative prices of items, making consumers switch from higher-priced goods to those that are more affordable.