Minimum-Wage Laws and Unions Are Similar to Each Other but Different

question 5

Multiple Choice

Minimum-wage laws and unions are similar to each other but different from efficiency wages in that minimum-wage law and unions

• A)cause unemployment,but efficiency wages do not.
• B)cause the quantity of labor supplied to exceed the quantity of labor demanded,but efficiency wages do not.
• C)cause wages to be above the equilibrium level.
• D)prevent firms from lowering wages in the presence of a surplus of workers.

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Definitions:

Impression

A metric used in digital marketing to represent the number of times an advertisement or social media post is displayed, regardless of whether it was clicked or not.

Norm

A standard or pattern of social behavior that is typical or expected within a particular group or culture.

Homophily

The tendency of individuals to associate and bond with others who are similar to themselves in characteristics such as beliefs, values, and socioeconomic status.