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If a Minimum Wage Law Is Passed Imposing a Price

question 69

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If a minimum wage law is passed imposing a price floor above the equilibrium price of unskilled labor, _____.​


Definitions:

Productivity

A measure of the efficiency of production, often calculated as the ratio of output to inputs used in the production process.

Productivity

The assessment of the effectiveness with which products and services are created, commonly measured by the amount of output for each input unit.

Output

The total amount of goods and services produced by an economic system, typically measured over a specific time period.

Productive Input

Resources, such as labor, materials, and machinery, used in the production process to create goods or services.

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