The Imposition of a Minimum Wage on a Competitive Labor

question 26

Multiple Choice

The imposition of a minimum wage on a competitive labor market will likely

• A)create additional employment opportunities because some low-skilled workers will now see their wage increase.
• B)lower the wages of workers earning more than the minimum wage.
• C)create unemployment as some people enter the labor market while some firms reduce the quantity of labor they are willing to employ due to the increased wage.
• D)increase unemployment of high-skilled workers as firms substitute high-skilled labor for low-skilled labor.
• E)lower the unemployment rate of low-income families.

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Definitions:

Strength of Ties

The extent of closeness and intimacy in a social relationship, influencing the flow of information and social support.

Organization

A structured group of people working together towards common goals, often characterized by a division of labor, hierarchies, and policies.

Beholder

An observer who perceives something visually or through subjective interpretation.

Power Effective

relates to the capacity of having a significant influence or impact in achieving objectives through the adept use of power and resources.