Suppose That the Equilibrium Wage Rate in an Industry Is

question 127

True/False

Suppose that the equilibrium wage rate in an industry is $10 per hour.The government then sets a minimum wage of $12 per hour.The result will be a surplus of labour supply.

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Definitions:

Current Creditors

Entities or individuals to whom a company owes money that is due to be paid within the short-term period, typically less than a year.

CRA

Stands for Canada Revenue Agency, the federal agency responsible for administering tax laws and various social and economic benefit and incentive programs.

Potential New Shareholders

Individuals or entities that may consider investing in a company's equity but currently do not hold any shares.

Auction Market

A marketplace in which buyers and sellers express their prices through bids and offers, and transactions occur at prices where supply and demand meet.