Minimum Wage Laws

question 338

Multiple Choice

Minimum wage laws

• A) create a price floor below which workers cannot be legally paid.
• B) create a shortage of workers because no one would be willing to work for the minimum wage.
• C) have no impact on wages because the equilibrium wage is higher than the minimum wage.
• D) are prime examples of price ceilings.

Know the process of balancing demand and supply in human resource planning.

Distinguish between replacement summaries and replacement charts.

Understand the difference between job descriptions and job specifications.

Comprehend the various methods used in collecting job- and performance-related information.

---

Definitions:

Elastic

Describes a situation in which the demand or supply for a good or service significantly changes in response to a change in price.

Coefficient

A numerical or constant factor in an equation that multiplies the variable, indicating the degree or level of some effect.

Price Elasticity of Supply

The measure of how the quantity supplied of a good changes in response to a change in its price.

Midpoint Formula

A method used in economics to calculate the elasticity of a variable, often used to estimate the price elasticity of demand by averaging the start and end points of a demand curve.