A Minimum Wage Set Above the Equilibrium Wage Rate

question 110

Multiple Choice

A minimum wage set above the equilibrium wage rate

• A) increases the natural unemployment rate.
• B) increases the demand for labor.
• C) increases the number of workers employed.
• D) decreases job rationing.
• E) decreases the natural unemployment rate because fewer workers will become unemployed.

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Definitions:

Median

The middle value in a sorted list of numbers, effectively dividing the dataset into two equal parts.

75th Percentile

A value below which 75% of the observations in a group fall, often used to measure the upper quartile.

Coefficient Of Variation

A standardized measure of the dispersion of a probability distribution or frequency distribution, often used to compare the degree of variation between different datasets.

Ages

Quantitative measures representing lengths of time that entities, typically individuals, have existed from birth to a specific reference point.