An Increase in the Federal Minimum Wage Would Shift the Long-Run

question 187

True/False

An increase in the federal minimum wage would shift the long-run aggregate supply curve inward (to the left).

Understand the concept of vesting in employer pension plans.

Differentiate between defined benefit plans and defined contribution plans.

Recognize the importance of Social Security as a social safety net.

Understand inflation's impact on retirement planning and saving.

---

Definitions:

Society Demand

This refers to the total demand for various goods and services by all members of a society or community, often influenced by factors like price, income levels, and societal norms.

Public Goods

Goods that are non-excludable and non-rivalrous, meaning they can be consumed by one individual without reducing availability to others and without a direct cost.

Free-Rider Problem

A situation where some individuals consume more than their fair share or pay less than their fair share of the cost of a shared resource.

Externalities

Effects of a transaction that affect third parties who did not choose to be involved in the market transaction, which can be either positive or negative.