The Alternative Analysis of the Minimum Wage Indicates That Which

question 29

Multiple Choice

The alternative analysis of the minimum wage indicates that which of the following may be true?

• A)The demand curve is vertical over the relevant range
• B)The supply curve is vertical over the relevant range
• C)There is only a very slight unemployment effect of a minimum wage
• D)All of the above
• E)None of the above

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Definitions:

Compensating Differential

A difference in wage rates designed to offset the desirability or undesirability of a job's attributes.

Human Capital

The collective skills, knowledge, or other intangible assets of individuals that can be used to create economic value for the individuals, their employers, or their community.

Compensating Differential

A difference in wages that arises to compensate workers for non-monetary differences in different jobs, such as risk or undesirable location.

Hazard Pay

Hazard Pay is additional compensation provided to employees for performing work that is dangerous or involves risk.