One Result of the Minimum Wage Is

question 177

Multiple Choice

One result of the minimum wage is

• A) a black market for labor that pays more than the minimum wage.
• B) a black market for labor that pays less than the minimum wage.
• C) decreased job search activity.
• D) a decrease in unemployment among poor and unskilled workers.
• E) an increase in employment among poor and unskilled workers.

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Definitions:

Utility Function

A mathematical representation in economics that captures an individual's preference ranking for different bundles of goods or outcomes.

Nonlabor Income

Income received from sources other than employment, such as investments, pensions, or inheritances.

Wage Rate

The fixed or variable payment earned by employees for their work or services, typically documented on an hourly, daily, or piecework basis.

Indifference Curves

A graph showing different bundles of goods between which a consumer is indifferent, illustrating preferences and trade-offs.