The Effect of a Legal Minimum Wage Set Above the Equilibrium

question 69

Multiple Choice

The effect of a legal minimum wage set above the equilibrium wage rate is

• A) an excess quantity of labor demanded.
• B) an excess quantity of labor supplied.
• C) an increase in the quantity of labor demanded.
• D) a decrease in quantity of labor supplied.

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Definitions:

Operating Assets

Resources used in the day-to-day functioning of a business that contribute to generating revenue.

Residual Income

The amount of income that exceeds the minimum return expected from a particular investment or operation.

Residual Income

The income that remains after deducting the cost of capital from the operating income.

Performance Evaluation

The process of assessing and reviewing an employee's work performance and productivity, often leading to feedback or development plans.