Why Is Raising the Minimum Wage Generally Ineffective

question 101

Multiple Choice

Why is raising the minimum wage generally ineffective?

• A) Most employers purchase labor on the black market, where the binding price floor is not present.
• B) The minimum wage is an amount suggested by the government, and employers are under no obligation to pay their employees the suggested basic wage.
• C) The minimum wage is usually set below the prevailing equilibrium wage and is frequently non-binding.
• D) Employees are often unconcerned with their wages and care more about the benefits that come with the job.
• E) Most employees who hold low-wage jobs work in the black market, where the binding price floor does not exist.

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Definitions:

Positioning Strategy

A marketing strategy that aims to establish a brand or product in the mind of target consumers relative to competitors.

Market Segmentation

The practice of dividing a target market into smaller, clearly identified segments of consumers with similar needs, characteristics, or behaviors.

Consumer Profiling

The process of creating detailed descriptions of segments of buyers to inform targeting strategies and product development.

Repositioning

The process of changing the market position of a product or brand to target new demographics or alter consumer perceptions.