If the Equilibrium Wage Is $4 Per Hour and the Minimum

question 70

True/False

If the equilibrium wage is $4 per hour and the minimum wage is $5.15 per hour, then a shortage of labor will exist.

---

Definitions:

Utilitarianism

An approach to ethical reasoning in which ethically correct behavior is related to an evaluation of the consequences of a given action on those who will be affected by it. In utilitarian reasoning, a “good” decision is one that results in the greatest good for the greatest number of people affected by the decision.

Principle of Rights Theory

A framework in ethical theory that posits certain rights are fundamental and must be respected and protected in moral and legal decisions.

Industry Code of Ethics

A set of principles and guidelines designed to help professionals in a specific industry maintain integrity and ethical standards in their work.

National Association of Manufacturers

A leading industrial trade association in the United States, representing small and large manufacturers in every industrial sector and in all 50 states.