A Minimum Wage

question 39

Multiple Choice

A minimum wage

• A) increases all workers' surplus because the wage rate increases.
• B) increases consumer surplus because the price of the good decreases.
• C) decreases the firms' surplus because fewer workers are hired at the higher wage.
• D) increases the firms' surplus and the workers' surplus because it increases the efficiency of the labor market.
• E) None of the above answers is correct.

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Definitions:

Racial Development

The process through which individuals recognize, understand, and appreciate racial and ethnic diversity and identity.

Attitude Change

The process through which an individual's feelings, beliefs, or predispositions towards an object, person, or issue are altered.

Racial Identity Development

The process by which individuals understand and become aware of the significance and influence of race in their lives and in society.

Ethnic Group

A community or population made up of people who share a common cultural background or descent.