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If the Minimum Wage Law Sets a Price Floor That

question 112

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If the minimum wage law sets a price floor that is below the equilibrium wage in the unskilled labor market,the minimum wage will create a shortage of unskilled labor.


Definitions:

Job Security

The probability or likelihood that an individual will retain their job without the risk of becoming unemployed.

Risk Losing

The potential or likelihood of experiencing a loss, failure, or negative outcome as a result of taking an action or making a decision.

Need for Social

The need for social refers to the human necessity for companionship, belonging, and acceptance within a group or community.

Avoid Risk-Taking

A behavioral tendency to steer clear of actions or decisions that could lead to negative outcomes or uncertainties.

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