At the Minimum Wage (Set Above the Equilibrium Wage)

question 20

Multiple Choice

At the minimum wage (set above the equilibrium wage) ,

• A) all individuals who end up working are paid less than if they were paid the equilibrium wage.
• B) none of the workers will lose there jobs or find themselves working fewer hours.
• C) none of the individuals who end up working are paid more than if they were paid the equilibrium wage.
• D) there will be fewer people working (or fewer labor hours demanded)than at the equilibrium wage.
• E) none of the above

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Definitions:

Tax Benefit

A financial advantage that results from specific tax laws or regulations, allowing for reductions in tax liability.

Avoidance

A legal principle that allows a party to cancel or annul a contract under certain conditions.

Profit Distributions

The allocation of a portion of a company's earnings to its shareholders, typically in the form of dividends or share buybacks.

De Facto Corporation

A business operating as if it were a legally incorporated company, despite not having completed the formal incorporation process, and is often treated as such by the law under certain conditions.