A Minimum Wage That Is Set Below the Equilibrium Wage

question 75

Multiple Choice

A minimum wage that is set below the equilibrium wage will:

• A) cause increased unemployment.
• B) have no effect on employment.
• C) cause the overall wage to increase.
• D) cause the overall wage to decrease.
• E) create more jobs.

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Definitions:

Worthy of Acceptance

Deserving approval or endorsement.

First Condition

An initial requirement or circumstance that must be met for something else to happen or be considered.

Fourth Condition

A term which can have multiple context-specific meanings, but generally refers to an additional, often unanticipated requirement or circumstance.