A Minimum Wage Set Above the Equilibrium Wage

question 120

Multiple Choice

A minimum wage set above the equilibrium wage

• A) decreases the deadweight loss in the market.
• B) decreases the workers' surplus because workers must spend resources looking for jobs.
• C) increases the firm's surplus.
• D) increases the market's efficiency.
• E) has no effect on the market.

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Definitions:

Industrial Regulation

The set of laws and rules governing the operation and behaviors of companies within specific sectors to ensure fair competition and protect consumers.

Antitrust Regulation

Laws designed to promote competition and prevent monopolies by regulating corporate mergers and breaking up companies when necessary.

Regulation

Rules or directives made and maintained by an authority to control or manage activities, often to protect public interests.

Protect Competition

Measures and policies established to ensure fair competition within markets, preventing monopolies and fostering innovation and fairness.