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

question 20

Multiple Choice

When a minimum-wage law forces the wage to remain above the equilibrium level,it

• A)raises both the quantity of labor supplied and the quantity of labor demanded compared to the equilibrium level.
• B)raises the quantity of labor supplied and reduces the quantity of labor demanded compared to the equilibrium level.
• C)reduces the quantity of labor supplied and raises the quantity of labor demanded compared to the equilibrium level.
• D)reduces both the quantity of labor supplied and the quantity of labor demanded compared to the equilibrium level.

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Definitions:

Direct Private Long-term Debt Financing

A method of funding where companies borrow money directly from lenders on a long-term basis without public issuance through financial markets.

Public Issues

Refers to the offering of securities, like stocks or bonds, to the public to raise capital.

Renegotiate

The process of revising the terms of a contract or agreement.

Market Value

The current price at which an asset or service can be bought or sold, determined by the supply and demand dynamics in the market.