If a minimum wage is set above the equilibrium wage rate, employment
A) will increase.
B) will not change.
C) will decrease.
D) may increase, decrease or not change depending on how the supply of labor is affected by the minimum wage.
C
You might also like to view...
The table above shows the marginal costs and marginal benefits of college education. With public provision of the efficient level of college education, tuition is
A) $10,000 per year. B) $12,000 per year. C) $14,000 per year. D) $16,000 per year.
Minneapolis business Rogue Chocolatier sells specialty chocolate bars with a high cocoa content. Rogue can produce 15 chocolate bars per day with one employee, 35 with 2, 50 with 3 and 55 with 4 employees. Which statement is TRUE?
A) Rogue's marginal product curve initially increases and then decreases. B) Rogue's marginal product curve decreases continually. C) Rogue's total product curve increases at an increasing rate. D) Rogue's marginal product curve decreases initially and then increases.