When a Minimum-Wage Law Forces the Wage to Remain Above

question 260

True/False

When a minimum-wage law forces the wage to remain above the level that balances supply and demand, the result is a shortage of labor.

Understand the importance of considering personality in career choices.

Recognize the skills and attributes employers seek in new graduates.

Appreciate the relationship between academic success and working hours.

Know the benefits of utilizing campus resources for job searching.

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Definitions:

Revealed Preference

A theory that determines consumer's preferences by observing their purchasing habits and behaviors instead of their preferences being explicitly stated.

Revealed Preference

A theory that assumes individuals' preferences can be determined by their purchasing habits.

Weak Axiom

A principle in consumer choice theory stating that if a consumer prefers bundle A over bundle B when both are available at the same prices, then the consumer will not purchase more of bundle B if its price rises.

Revealed Preference

An economic theory stating that the preferences of consumers can be understood by their purchasing habits.