Minimum Wages Create Unemployment in Markets Where They Create a

question 34

Multiple Choice

Minimum wages create unemployment in markets where they create a

• A)shortage of labor.Minimum wage laws are not the predominant reason for unemployment in the U.S.
• B)shortage of labor.Minimum wage laws are the predominant reason for unemployment in the U.S.
• C)surplus of labor.Minimum wage laws are not the predominant reason for unemployment in the U.S.
• D)surplus of labor.Minimum wage laws are the predominant reason for unemployment in the U.S.

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Definitions:

Production

The process of creating goods and services, from the input of resources to the output of finished products.

Price Level

The average of the current prices of goods and services in the economy, often compared over time to assess inflation.

Equilibrium GDP

The level of real GDP at which aggregate supply equals aggregate demand, resulting in a stable economy without tendencies to change.

Recession

A fleeting period of economic diminution, involving a dip in trade and industry work, usually defined by a decrease in GDP over two following quarters.