For a Legislated Minimum Wage to Be Binding in a Competitive

question 122

Multiple Choice

For a legislated minimum wage to be binding in a competitive labour market,it must be set

• A)below the free-market wage.
• B)equal to the free-market wage.
• C)above the free-market wage.
• D)at or below the free-market wage.
• E)such that no worker can earn more than the established minimum wage.

---

Definitions:

Milgram Experiment

A psychological experiment conducted by Stanley Milgram in the 1960s to study obedience to authority, where participants were instructed to administer electric shocks to another person.

Stanford University Prison Experiment

A psychological study conducted by Philip Zimbardo in 1971 at Stanford University, where students were assigned roles of prisoners and guards to explore the effects of perceived power.

Generalization

Drawing a conclusion about a certain characteristic of a population based on a sample from it.

Logical Support

The provision of reasons or evidence to justify a claim or argument.