The "Fair Rules" View of Fairness Says That One of the Reasons

question 1

Multiple Choice

The "fair rules" view of fairness says that one of the reasons a minimum wage is unfair is because it

• A) benefits all workers.
• B) blocks voluntary exchange.
• C) is imposed by government.
• D) is below the equilibrium wage rate.
• E) cannot be enforced.

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Definitions:

Nominal Wages

The amount of money paid to workers before adjusting for inflation, reflecting the face value of earnings irrespective of purchasing power.

Annual Rate

A percentage that represents the growth, yield, or return of an investment or account over a one-year period.

Real Wages

The purchasing power of wages, quantifying the amount of goods and services that can be bought, accounting for inflation.

Nominal Wages

Wages paid to workers measured in current money, without adjusting for inflation or purchasing power.