Figure 19-1 -The Idea That Minimum-Wage Laws Lead to Wages That Exceed

question 365

Multiple Choice

Figure 19-1

-The idea that minimum-wage laws lead to wages that exceed equilibrium levels

• A) is a component of the theory of efficiency wages.
• B) cannot be valid unless labor unions are sufficiently powerful to force enactment of those laws in the first place.
• C) is more applicable to unskilled-labor markets than to skilled-labor markets.
• D) All of the above are correct.

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Definitions:

Chi-Square Distribution

A probability distribution that is used in statistical significance tests, especially for categorical data.

Degrees of Freedom

The quantity of distinct values or amounts that a statistical distribution can accept.

Population Variance

A measure of the spread of a population’s values, indicating how much the individuals within the population differ from the population mean.

Chi-Squared Distributed

Referring to a statistical distribution that is used to describe the distribution of the sum of squares of a set of variables, often used in hypothesis testing.