A Minimum Wage Law

question 129

Multiple Choice

A minimum wage law

• A) lowers the wage rate of workers who are able to get a job.
• B) increases employment.
• C) increases the time spent searching by workers who cannot find a job.
• D) creates efficiency in the labor market.
• E) must be set below the equilibrium wage rate in order to have an impact.

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Definitions:

Registration Statement

A set of documents, including financial statements and a prospectus, filed with the Securities and Exchange Commission before a company offers securities for sale to the public.

Privity Of Contract

The principle that a contract imposes rights and obligations only on the parties to the contract, and not on any third parties.

Restatement Test

A doctrine used to reinterpret or clarify existing laws or legal principles, often through a secondary authoritative source that restates the law.

Privity Of Contract

The principle that contracts are binding only on the parties signing the agreement, not on any third parties.