The Minimum Wage Is a

question 173

Multiple Choice

The minimum wage is a

• A) possible cause of job search because it lowers wages below their equilibrium.
• B) possible cause of job rationing because it lowers wages below their equilibrium.
• C) government established highest wage that is legal to pay.
• D) possible cause of job rationing because it raises wages above their equilibrium.
• E) factor that decreases unemployment because fewer people search for work if the minimum wage is increased.

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Definitions:

Ethical Theory

Philosophical thinking about morality, encompassing principles and guidelines that dictate what is right and wrong behavior.

Ethical Relativism

The theory that moral values and judgments are ultimately dependent on the cultural, societal, or personal context.

Payroll Tax

Taxes imposed on employers and/or employees, calculated as a percentage of the salaries that employers pay their staff.

Kantian Ethics

Kantian Ethics is a moral philosophy based on the work of Immanuel Kant, emphasizing that moral actions are those performed out of duty and guided by universalizable principles.