If the Legal Minimum Wage Rate Is Set at $1/hour

question 85

Multiple Choice

If the legal minimum wage rate is set at $1/hour instead of at the equilibrium rate,

• A)employment for inexperienced and marginal workers will tend to fall.
• B)employment of inexperienced and marginal workers will tend to rise.
• C)employment of inexperienced and marginal workers will not be affected.
• D)there is no way to determine how the employment of inexperienced and marginal workers would be affected.

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Definitions:

Store of Value

Store of value is a function of money that allows it to retain purchasing power over time, enabling people to save it and use it in the future.

Fundamental Questions

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Economy

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