Minimum Wage Legislation

question 19

Multiple Choice

Minimum wage legislation:

• A) sets a price ceiling above the market-clearing price.
• B) has no impact if the minimum wage is above the market-clearing price.
• C) has the same impact in all labor markets.
• D) creates unemployment when the minimum wage is above the equilibrium wage.
• E) is opposed by organized labor.

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Definitions:

Capacity For Change

The active phase of self-regulation; willpower.

Self-Regulation

The process by which an individual controls their behavior, emotions, and thoughts towards achieving long-term goals.

Capacity For Change

The potential or ability of an individual or system to modify its attributes or behavior in response to external conditions or stimuli.

Willpower

The ability to resist short-term temptations in order to meet long-term goals.