A Minimum Wage Set Above the Equilibrium Wage

question 120

Multiple Choice

A minimum wage set above the equilibrium wage

• A) decreases the deadweight loss in the market.
• B) decreases the workers' surplus because workers must spend resources looking for jobs.
• C) increases the firm's surplus.
• D) increases the market's efficiency.
• E) has no effect on the market.

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Definitions:

Collection Letters

Written notices sent by creditors to debtors requesting payment of overdue balances.

Overlooked

Failed to be noticed or considered; omitted due to inattention.

Delinquent Balances

Unpaid amounts of money that are past due and have not been settled within the agreed time frame.

Biweekly

occurs or is done every two weeks or twice a week, depending on context.