A Binding Minimum Wage May Not Help All Workers, but It

question 84

True/False

A binding minimum wage may not help all workers, but it does not hurt any workers.

---

Definitions:

Numeraire Good

An economic term referring to a benchmark commodity or asset used to compare the value of other goods or assets.

Utility Function

A utility function is a mathematical representation used in economics to model satisfaction or preference regarding goods or services by consumers.

Initial Endowment

The initial amount of resources, wealth, or goods that an individual or entity possesses at the start of a period.

Strictly Convex Preferences

Preferences that imply a consumer always prefers a mixture or combination of two goods over having just one of them, indicating a strong preference for variety.