Minimum-Wage Laws Can Keep Wages

question 24

Multiple Choice

Minimum-wage laws can keep wages

• A)above equilibrium and cause a surplus of labor.
• B)above equilibrium and cause a shortage of labor.
• C)below equilibrium and cause a surplus of labor.
• D)below equilibrium and cause a shortage of labor.

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Definitions:

Income Level

A measure of the amount of money earnings or revenue a person or entity receives within a specific time period.

Total Utility

The overall satisfaction or benefit a consumer receives from consuming a specific quantity of goods or services.

Income Distribution

How a nation’s total GDP is distributed amongst its population, influencing economic inequality.

Marginal Utility

The added satisfaction a consumer gains from consuming one more unit of a good or service.