The Unemployment of Some Groups, Such as Low-Skill Workers, May

question 280

True/False

The unemployment of some groups, such as low-skill workers, may increase as a result of the imposition of a minimum wage.

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Definitions:

Allocate Resources

The process of distributing available resources, whether material, financial, or human, among competing demands and uses in an efficient manner.

Willingness to Pay

The maximum amount a consumer is ready to spend for a good or service.

Surplus

The situation where the quantity supplied of a product exceeds the quantity demanded at a given price.

Negative Externality

An economic situation where a third party is negatively affected by the actions of others, typically not reflected in the cost of those actions, such as pollution.