A Minimum Wage Set Above the Equilibrium Wage Rate

question 24

Multiple Choice

A minimum wage set above the equilibrium wage rate

• A) increases the quantity of labor services supplied.
• B) decreases the quantity of labor services supplied.
• C) has no effect on the quantity of labor services supplied.
• D) shifts the labor supply curve rightward.
• E) shifts the labor supply curve leftward.

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Definitions:

Balance

The amount of money currently in an account or the difference between the total debits and credits recorded.

Overhead Costs

Expenses related to the day-to-day running of a business that are not directly linked to a specific product or service.

Operating Profit

Profit earned from a firm's core business operations, excluding deductions of interest and taxes.

Break-even Price

The market price that a stock or commodity must reach for an investor to recover their initial investment without any profit or loss.