The Market Wage Could Be Higher Than the Equilibrium Wage

question 74

Multiple Choice

The market wage could be higher than the equilibrium wage if a worker

• A)belongs to a labor union.
• B)is covered by a minimum-wage law.
• C)is paid an efficiency wage.
• D)All of the above are correct.

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Definitions:

Formal

Adhering to established conventions or requirements; official.

Purchase Price

The amount of money paid to buy goods, services, or assets.

Offeror

The party in a contractual agreement who proposes the terms of the contract to the offeree for acceptance.

Binding Contract

An agreement that is legally enforceable, with clearly defined obligations and rights for all parties involved.