Consider the Effect of a Minimum Wage Imposed in an Unregulated

question 117

Multiple Choice

Consider the effect of a minimum wage imposed in an unregulated labour market. Which of the following statements is correct?
I. A minimum wage set above the equilibrium wage increases the quantity of labour supplied.
Ii. A minimum wage set above the equilibrium wage increases the supply of labour.
Iii. A minimum wage set above the equilibrium wage decreases the demand for labour.

• A)i only
• B)ii only
• C)iii only
• D)ii and iii only
• E)i, ii, and iii

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Definitions:

Sensory Neurons

Nerve cells that transmit sensory information (e.g., sight, sound, touch) from the body to the central nervous system.

Motor Neurons

Nerve cells forming part of the pathway along which impulses pass from the brain or spinal cord to a muscle or gland, initiating movement or action.

Central Nervous System

The part of the nervous system consisting of the brain and spinal cord, responsible for integrating sensory information and responding accordingly.

Neurons

Basic units of the nervous system that process and transmit information through electrical and chemical signals.