Imposing a Minimum Wage May Cause the Quantity of Labor

question 43

True/False

Imposing a minimum wage may cause the quantity of labor services demanded to fall short of the quantity that laborers are willing to supply at the minimum wage.

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Definitions:

Unrealistically High

Pertains to expectations or goals that are set far beyond achievable standards, often leading to disappointment or failure.

Psychological Contract Breach

Occurs when an employee perceives that their employer has failed to fulfill one or more promises or agreements in their perceived psychological contract.

Reality Shock

The feeling of surprise and disorientation experienced when one's expectations clash with the actual reality.

Psychological Contract

An unwritten and implicit agreement between an employer and an employee that outlines mutual expectations, including job security, loyalty, and commitment.