The Minimum Wage

question 144

Multiple Choice

The minimum wage:

• A) is an example of a price floor.
• B) leads to an increase in the number of people employed in unskilled jobs.
• C) leads to a decrease in the number of people employed in skilled jobs.
• D) causes an increase in social welfare.

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Definitions:

Equilibrium Quantity

The quantity of goods or services supplied that is equal to the quantity demanded at the market equilibrium price.

Rent Control

Governmental regulation of the amount landlords can charge for residential housing, intended to make housing more affordable.

Equilibrium Level

A condition where the supply and demand in the market are equal, leading to steady prices and amounts.

Supply Curve

A visual chart that illustrates how the price of a product correlates with the amount suppliers are prepared to manufacture and sell.