Why Is Raising the Minimum Wage Generally Ineffective

question 14

Multiple Choice

Why is raising the minimum wage generally ineffective?

• A) Most employers purchase labor on the black market,where the binding price floor is not present.
• B) The minimum wage is an amount suggested by the government,and employers are under no obligation to pay their employees the suggested basic wage.
• C) The minimum wage is usually set below the prevailing equilibrium wage and is frequently nonbinding.
• D) Employees are often unconcerned with their wages and care more about the benefits that come with the job.
• E) Most employees who hold low-wage jobs work in the black market,where the binding price floor doesn't exist.

Recognize the importance of questioning preexisting assumptions and reaching out for innovation.

Identify the role of company culture in supporting or hindering innovation.

Understand the principles and practices of protecting intellectual property, including patents, trade secrets, copyrights, and trademarks.

Identify the characteristics and advantages of different modes of legal protection for intellectual property.

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Definitions:

Security Market Line

A representation in the Capital Asset Pricing Model (CAPM) that displays the risk versus expected return of the market at any given time.

Beta Coefficient

A measure of a stock's volatility or risk relative to the overall market.