An Increase in the Minimum Wage Will Decrease Employment More

question 15

Multiple Choice

An increase in the minimum wage will decrease employment more when

• A) the supply of labor is more elastic.
• B) the uncovered sector is small.
• C) the demand for labor is inelastic.
• D) All of the above will cause the minimum wage to decrease employment more.

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Definitions:

Intangibles

Non-physical assets such as patents, copyrights, brand recognition, and goodwill that have value but are not physical objects.

Merchandise Trade Balance

The difference between a country's imports and exports of goods.

Tangible Products

Physical items that can be touched, seen, and usually measured, such as books, furniture, and food items.

Finance

The management of large amounts of money, especially by governments or large companies.