A Binding Minimum Wage

question 100

Multiple Choice

A binding minimum wage

• A)alters both the quantity demanded and quantity supplied of labor.
• B)affects only the quantity of labor demanded;it does not affect the quantity of labor supplied.
• C)has no effect on the quantity of labor demanded or the quantity of labor supplied.
• D)causes only temporary unemployment because the market will adjust and eliminate any temporary surplus of workers.

---

Definitions:

Comparison

The act of evaluating two or more items, people, or situations to identify similarities, differences, or to ascertain superiority.

Uncertainty-Identity Theory

A social psychological theory suggesting that people join and identify with groups in order to reduce feelings of uncertainty about themselves and the world.

Social Identity Processes

The mechanisms through which individuals develop and maintain their social identity, including categorization, identification, and comparison with other groups.

Uncertainty

Uncertainty involves situations where the outcomes, probabilities, or implications are unclear, often leading to ambiguity and indecision.