Which of the following is an effect of a minimum wage law that establishes a wage floor above the current market clearing wage?
A. a decrease in the quantity of labor supplied
B. surplus labor, or unemployment
C. a decrease in the market clearing wage
D. an increase in the supply of labor
Answer: B
Economics
You might also like to view...
Bidding in a Dutch auction continues until ________
A) no bidder is willing to bid any higher B) a bidder accepts the price announced by the auctioneer C) a bidder bids above the market price of the good D) a bidder bids below the starting bid
Economics
Figure 11-1
In Figure 11-1, to reach the level of potential GDP, the administration of President Obama would most likely advocate
a.
increasing Social Security payments.
b.
decreasing defense spending.
c.
decreasing personal income taxes.
d.
All of the above are correct.
Economics