Employment Often Increases After an Increase in the Minimum Wage

question 24

Multiple Choice

Employment often increases after an increase in the minimum wage because

• A) more people want to work at the new, higher wage.
• B) independently, labor demand increases significantly at the same time.
• C) the minimum wage is below the equilibrium level of wages.
• D) the labor supply curve is vertical.

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Definitions:

Unsystematic Risk

The risk associated with individual assets, such as a company's stock, that can be mitigated through diversification.

Beta

A standard for evaluating the unpredictability, or fundamental risk, of a security or diversified portfolio in contrast with the entire market.

Non-diversifiable Risk

The portion of risk that can't be eliminated through diversification, often related to systemic factors affecting all investments.

Standard Deviation

A statistical measure that quantifies the amount of variation or dispersion of a set of data values.