If the Minimum Wage Is Set Above the Market Wage

question 274

Multiple Choice

If the minimum wage is set above the market wage

• A)the quantity of labor supplied will be below the quantity of labor demanded.
• B)unemployment will rise.
• C)highly-skilled workers will have a harder time finding jobs.
• D)All of the above are correct.

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Definitions:

Price Change

A variation in the cost of a good or service over time.

Garden Yields

The produce or output generated from gardening activities, including fruits, vegetables, and flowers.

Utility Function

A mathematical representation of how consumers rank different bundles of goods according to their level of satisfaction or preference.

Nonlabor Income

Income received that does not come from working, such as investment income, social security benefits, or inheritance.