Critics of the Minimum Wage Argue That an Increase in the Minimum

question 172

Multiple Choice

Critics of the minimum wage argue that an increase in the minimum wage rate above the equilibrium rate of a purely competitive labor market would

• A) increase unemployment in the labor market.
• B) increase firms' demand for labor.
• C) decrease the supply of labor.
• D) cause firms to substitute labor for capital.

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Definitions:

Coastal Cities

Urban areas located along coastlines, often characterized by significant population density, economic activity, and cultural diversity.

Slavery Prevalence

The widespread existence and practice of slavery, historically seen in various forms across the world where individuals were owned by others, deprived of personal freedom, and forced to work without compensation.

Small Farms

Agricultural operations characterized by a small land area or low output, often family-owned and operated, focusing on local markets or subsistence farming.