One Disadvantage to a Minimum Wage as a Policy Tool

question 187

Multiple Choice

One disadvantage to a minimum wage as a policy tool to reduce relative poverty is that it tends to cause unemployment. Under what circumstances will the negative impact of unemployment be the lowest?

• A) when the supply of labour and demand for labour are both relatively elastic
• B) when the supply of labour is relatively elastic and the demand for labour is relatively inelastic
• C) when the supply of labour is relatively inelastic and the demand for labour is relatively elastic
• D) when the supply of labour and demand for labour are both relatively inelastic

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Definitions:

Disruptive Malaise

A state of general discomfort or uneasiness, whose exact cause is difficult to identify, that disrupts regular functioning or well-being.

Sleep Disturbances

Varied issues related to sleeping, including difficulty falling or staying asleep, excessive sleepiness, or abnormal behaviors during sleep.

Sedative

A class of drugs that have a calming or tranquilizing effect, often used to treat anxiety or help with sleep.

Head Injury

A physical trauma to the head, often leading to brain damage or dysfunction.