How Would an Economist Explain a Teenager's Continued Unemployment Where

question 133

Multiple Choice

How would an economist explain a teenager's continued unemployment where there exists a minimum wage?

• A) The minimum wage law made it such that the quantity of labor willing to work at that wage was less than the quantity of labor demanded at that wage.
• B) The minimum wage law made it illegal to hire teenagers because they likely would have been unable to work a minimum number of hours.
• C) The minimum wage law made it such that the quantity of labor willing to work at that wage was greater than the quantity of labor demanded at that wage.
• D) The minimum wage law made it such that the market had reached equilibrium.
• E) The minimum wage law was nonbinding.

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Sub-Goals

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Common Heuristic

A widely used mental shortcut or rule of thumb that simplifies decision-making and problem-solving processes.

Problem-Solving

The process of finding solutions to difficult or complex issues.