If a Minimum Wage Is Introduced That Is Above the Equilibrium

question 218

Multiple Choice

If a minimum wage is introduced that is above the equilibrium wage rate,

• A) the quantity of labor demanded increases.
• B) job search activity increases.
• C) the supply of labor increases and the supply of labor curve shifts rightward.
• D) unemployment decreases because more workers accept jobs at the higher minimum wage rate.
• E) the quantity of labor supplied decreases because of the increase in unemployment.

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Definitions:

Improve Communication

The process of enhancing the exchange of information between individuals or groups to achieve clearer and more effective interactions.

Gossip

Informal or idle talk or rumors, especially about the personal or private affairs of others.

Stereotyping

The act of ascribing fixed, generalized traits to members of specific groups, often leading to prejudice and discrimination.

Judgment

The ability to make considered decisions or come to sensible conclusions.