If the Minimum Wage Law Sets a Wage Floor Below

question 27

Multiple Choice

If the minimum wage law sets a wage floor below the equilibrium wage in the market for unskilled labor,then the

• A) minimum wage will create a surplus of unskilled labor.
• B) minimum wage will create a shortage of unskilled labor.
• C) minimum wage will not affect the unskilled labor market.
• D) unskilled labor market will change, but we cannot be certain how.

---

Definitions:

Product Design

The process of creating a new product to be sold by a business to its customers, prioritizing functionality, appearance, and user experience.

Outsources

Outsourcing involves contracting out certain business processes or tasks to external providers, often to reduce costs and improve efficiency.

Competency

A combination of skills, knowledge, and behavior that contributes to an individual's ability to perform tasks effectively.

Headcount

The total number of individuals employed by an organization, including all full-time and part-time staff.