Because Minimum Wage Is a Price Floor

question 165

Multiple Choice

Because minimum wage is a price floor

• A)it will be set below the market equilibrium price.
• B)it will create a deadweight loss.
• C)it will increase the number of jobs available in the labor market.
• D)it will maximize consumer surplus.

Identify the methods of rationing scarce goods and services.

Determine the equilibrium price from a given market scenario.

Explain the concept of demand curve and its relationship with price and quantity.

Comprehend the role of the price system in sending signals to buyers and sellers.

---

Definitions:

Bankruptcy Proceedings

Legal process initiated by an insolvent individual or company to receive relief from debt by reorganizing or liquidating assets.

Creditors

Entities or individuals that a company owes money to due to the provision of goods, services, or loans.

Reorganization

In bankruptcy, a plan to restructure the failing company so that it may continue in business.

Debt Repayment

The act of paying back borrowed money, typically including principal and interest components.