If a Minimum Wage Is Introduced That Is Above the Equilibrium

question 218

Multiple Choice

If a minimum wage is introduced that is above the equilibrium wage rate,

• A) the quantity of labor demanded increases.
• B) job search activity increases.
• C) the supply of labor increases and the supply of labor curve shifts rightward.
• D) unemployment decreases because more workers accept jobs at the higher minimum wage rate.
• E) the quantity of labor supplied decreases because of the increase in unemployment.

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Definitions:

Group Conformity

The act of changing one's behavior or beliefs to match those of others within a group, often to feel included or accepted.

Inequality

A condition or circumstance where individuals or groups have unequal access to opportunities, resources, and rights, leading to discrepancies in wealth, status, and power.

Urban Networks

Complex systems of cities and towns connected through economic, social, and infrastructural relationships, emphasizing the interconnectedness of urban areas.

Characteristics

Features or qualities that distinguish an individual, group, or thing from others.