Minimum-Wage Laws

question 27

Multiple Choice

Minimum-wage laws

• A)create frictional unemployment,while firms paying wages above equilibrium to reduce worker turnover creates structural unemployment.
• B)create structural unemployment,while firms paying wages above equilibrium to reduce worker turnover creates frictional unemployment.
• C)and firms paying wages above equilibrium to reduce worker turnover both create structural unemployment.
• D)and firms paying wages above equilibrium to reduce worker turnover both create frictional unemployment.

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Definitions:

Socialism

An economic system in which raw materials and the means of production are collectively owned.

Part-Time Work

Employment with fewer hours per week than a full-time job, often offering flexibility but with reduced benefits compared to full-time positions.

Legitimate

Conforming to the law or to rules; authorized or officially recognized.

Power

The aptitude or competence to sway the decisions of individuals or alter the flow of occurrences.