The Minimum Wage Is Set Above the Equilibrium Wage Rate

question 171

Multiple Choice

The minimum wage is set above the equilibrium wage rate.Does the minimum wage create inefficiency?

• A) Yes
• B) No
• C) Only if the supply of labor is perfectly inelastic
• D) Only if the supply of labor is perfectly elastic
• E) Only if employment exceeds the efficient amount

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Definitions:

Main Effect

In the context of statistical analysis, especially ANOVA, refers to the direct impact of an independent variable on a dependent variable.

Degrees of Freedom

The number of values in the final calculation of a statistic that are free to vary, often associated with the sample size.

Two-way ANOVA

A statistical test used to determine the effect of two independent variables on a dependent variable.

Factor A

A specific variable or element considered in an experimental design or analysis, often denoted as a primary independent variable.