Minimum Wage Laws Create Unemployment for Low-Skilled Workers Because the Legal

question 61

Multiple Choice

Minimum wage laws create unemployment for low-skilled workers because the legal minimum wage is set

• A) above the market wage, causing the quantity of labour supplied to be greater than the quantity of labour demanded.
• B) below the market wage, causing the quantity of labour supplied to be greater than the quantity of labour demanded.
• C) above the market wage, causing the quantity of labour supplied to be less than the quantity of labour demanded.
• D) below the market wage, causing the quantity of labour supplied to be less than the quantity of labour demanded.

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Definitions:

Strikes

Work stoppages initiated by employees to protest against labor conditions, policies of their employers, or to demand higher wages and benefits.

Lockouts

A labor relation strategy where employers prevent employees from working during a dispute, typically to enforce terms of employment.

Lost Profits

Lost profits are potential earnings that a business did not realize due to certain events, disruptions, or decisions that impacted its operations negatively.

Wage Income

The earnings received by individuals for their labor or services, typically calculated on an hourly, daily, or monthly basis.