If the Minimum Wage Increased, Then at Any Given Rate

question 178

Multiple Choice

If the minimum wage increased, then at any given rate of inflation

• A)both output and employment would be higher.
• B)neither output nor employment would be higher.
• C)output would be higher and unemployment would be lower.
• D)output would be lower and unemployment would be higher.

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Definitions:

Pure Public Good

A pure public good is characterized by non-excludability and non-rivalry, meaning one person's consumption does not reduce availability for others and no one can be prevented from consuming it.

Single Peaked

Refers to a preference or utility pattern where an individual's satisfaction increases up to a certain point, after which it starts to decrease, creating a peak at the optimum point.

Public Goods

Goods that are characterized by being non-excludable and non-rivalrous, meaning that no one can be excluded from their use and one person's use does not diminish another's.

Public Goods

Goods that are non-excludable and non-rivalrous, meaning that one individual's consumption of the good does not reduce its availability to others and cannot be confined to paying customers only.