Employment Often Increases After an Increase in the Minimum Wage

question 24

Multiple Choice

Employment often increases after an increase in the minimum wage because

• A) more people want to work at the new, higher wage.
• B) independently, labor demand increases significantly at the same time.
• C) the minimum wage is below the equilibrium level of wages.
• D) the labor supply curve is vertical.

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Definitions:

Boomerang Generation

Refers to young adults who return to live with their parents after a period of living independently due to economic or personal reasons.

Blended Family

A family unit composed of a couple and their children from this and all previous relationships.

Mixed-Union

A romantic partnership between individuals of different racial, ethnic, religious, or cultural backgrounds.

Common-Law

A body of unwritten laws based on legal precedents established by the courts. Common law influences the decision-making process in novel cases where the outcome cannot be determined based on existing statutes or written rules of law.