Which of the Following Statements Is False

question 25

Multiple Choice

Which of the following statements is false?

• A)wages never deviate from the balance of supply and demand in the market for labour
• B)some wages fall above the equilibrium wage
• C)workers sometimes form labour unions to push their wages up
• D)the federal government mandates that employers to pay their workers at least as much as the minimum wage

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Definitions:

Market For Butter

The supply and demand dynamics concerning the sale and purchase of butter.

Surplus

A situation in which the quantity of a good or service supplied exceeds the quantity demanded at the current price.

Binding Price Floor

A minimum price set by the government that is above the equilibrium price, causing a surplus of the good.

Equilibrium Price

The price at which the quantity of a good or service demanded by consumers equals the quantity supplied by producers, resulting in a balanced market.