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If an Increase in the Government-Imposed Minimum Wage Pushes the Price

question 151

Multiple Choice

If an increase in the government-imposed minimum wage pushes the price (wage) of unskilled labor above market equilibrium, which of the following will most likely occur in the unskilled labor market?


Definitions:

Earned-Income Activities

Activities performed by non-profit organizations or businesses that generate revenue through the sale of goods and services rather than through donations.

Social Entrepreneurs

Individuals who establish enterprises with the goal of solving social problems or effecting social change, using business principles for public good.

Economic Value

The worth of a good or service determined by the benefit it provides weighed against its cost.

Social Value

The importance or benefit that something provides to society or a specific community group, often beyond economic value.

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