What Is the Effect of Minimum-Wage Laws on Unemployment

question 63

Multiple Choice

What is the effect of minimum-wage laws on unemployment?

• A) Minimum-wage laws are the major cause of natural unemployment.
• B) Minimum-wage laws probably increase teenage unemployment.
• C) Minimum-wage laws mainly affect skilled workers.
• D) Minimum-wage laws have no impact on unemployment.

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Definitions:

Market Price

The current price at which an asset or service can be bought or sold in a given market, determined by supply and demand.

Equilibrium Quantity

The amount of a good or service that is supplied and demanded at the equilibrium market price.

Marginal Product

The additional output resulting from the use of one more unit of a factor of production.

Computer Programmers

Professionals skilled in writing and testing the code that enables software applications to function according to user or system design specifications.