The Unemployment Caused by Minimum Wage Would Be Larger If

question 65

Multiple Choice

The unemployment caused by minimum wage would be larger if

• A) both labor demand and labor supply are more elastic.
• B) both labor demand and labor supply are more inelastic.
• C) minimum wage is set equal to the equilibrium wage rate.
• D) minimum wage is set below the equilibrium wage rate.
• E) both labor demand and labor supply are perfectly inelastic.

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Definitions:

Opinions

Personal beliefs or judgments that are not based on certainty or knowledge but on what one thinks or feels about a particular subject.

Knowledge

Information, awareness, or understanding gained through experience, education, or research.

Information

Data that has been processed, organized, or structured in a way that adds to its meaning or context, making it useful for decision-making.

Cognitive Dissonance

A psychological phenomenon occurring when an individual holds contradictory beliefs, ideas, or values, leading to discomfort and the motivation to reduce the inconsistency.