If the Minimum Wage Is Lowered and Closer to the Market

question 102

Multiple Choice

If the minimum wage is lowered and closer to the market level, the:

• A) gains from trade would decrease, compared to a higher minimum wage.
• B) gains from trade would increase, compared to a higher minimum wage.
• C) lost gains from trade would increase, compared to a higher minimum wage.
• D) deadweight loss would increase, compared to a higher minimum wage.

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Definitions:

Expectancy

In motivational psychology, expectancy refers to the belief that one's effort will lead to the attainment of desired performance goals.

Expectancy Theory

A theory that proposes an individual's motivation is related to their expectation of a desired outcome and the attractiveness of that outcome.

First-Level Outcomes

Immediate results or effects of an action or intervention that can lead to longer-term impacts or second-level outcomes, often used in evaluation frameworks.

Expectancy Theory

A motivational theory suggesting that individuals are motivated to act in certain ways based on their expectations that their actions will lead to desired outcomes.