Assume the Minimum Wage Exceeds the Market-Clearing Wage

question 66

Multiple Choice

Assume the minimum wage exceeds the market-clearing wage. If there is an increase in the labor supply, then the number of workers who are unemployed will ______ and the number of workers who are employed will _______.

• A) increase; increase
• B) increase; decrease
• C) increase, not change
• D) decrease; increase

---

Definitions:

Train Station

A facility on a railway line where trains regularly stop to load or unload passengers and/or freight.

Cross-Dock

A logistics practice where incoming shipments are unloaded, sorted, and directly reloaded onto outbound vehicles for delivery to the final destination, minimizing storage time.

Use Fee

A charge for using a service, facility, or equipment, typically levied to cover maintenance and operational costs.

Congestion

A condition of overcrowding or overburdening, often referring to heavy traffic or network data leading to delays.