If a Minimum Wage Is Posted in the Labor Market

question 1

Multiple Choice

If a minimum wage is posted in the labor market:

• A) the demand for labor would increase.
• B) the supply of labor would decrease.
• C) a surplus of labor would develop.
• D) All of the answers are correct.

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Definitions:

De Jure Corporation

A corporation that has been legally incorporated and recognized by the state, operating fully under the law.

Single Purpose

Designed or intended for one specific use or objective.

Limited Time

A restricted period designated for a specific purpose or event.

Common Stockholders

Individuals or entities that own common shares in a corporation, entitling them to vote and share in the profits.