How Would Imposing a Minimum Wage Above the Market-Clearing Wage

question 5

Multiple Choice

How would imposing a minimum wage above the market-clearing wage affect employment in a competitive labor market?

• A) Employment would increase as previously unemployed workers would be more encouraged to find a job.
• B) Employment would increase because a higher minimum wage would create more jobs for low-skilled workers.
• C) Employment would increase as firms would illegally hire workers below the original competitive wage.
• D) Employment would be unchanged as workers are nonresponsive to low wages.
• E) Employment would decrease as some workers who are willing to work at the lower competitive wage would no longer be able to find work.

---

Definitions:

Co-acting Team Pattern

A team configuration where members work independently towards a common goal but their tasks do not require constant interaction among them.

Centralized Communication Network

A communication structure where all decisions and processes are handled through a single central point or authority, leading to streamlined decision-making processes.

Groupthink

A phenomenon where the desire for harmony or conformity in a group leads to an irrational or dysfunctional decision-making outcome.

Critical Discussion

A comprehensive analysis or debate where ideas, assumptions, and evidence are questioned and examined in depth.