A Minimum Wage That Is Set Above a Market's Equilibrium

question 214

Multiple Choice

A minimum wage that is set above a market's equilibrium wage will result in

• A) an excess demand for labor, that is, unemployment.
• B) an excess demand for labor, that is, a shortage of workers.
• C) an excess supply of labor, that is, unemployment.
• D) an excess supply of labor, that is, a shortage of workers.

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Definitions:

Unattainable

Describes a goal, level, or condition that cannot be achieved or reached, often used in the context of economic production and efficiency.

After Trade

After trade refers to the state of an economy, market, or trading partners following the completion of trade transactions, often highlighting changes in economic indicators or balances.

Production

The process of creating goods and services using inputs such as labor, capital, and raw materials.

Consumption

The use of goods and services by households, contributing to their wellbeing and the overall economy.