A law establishing a minimum legal price for a good or service (the minimum wage for example) is known as
a. an equilibrium price.
b. a price floor.
c. a price ceiling.
d. a price wall.
B
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In a short-run macroeconomic equilibrium, real GDP exceeds potential GDP. If aggregate demand does not change, then the
A) short-run aggregate supply curve will shift rightward as the money wage rate falls. B) short-run aggregate supply curve will shift leftward as the money wage rate rises. C) long-run aggregate supply curve will shift leftward as the money wage rate rises. D) long-run aggregate supply curve will shift leftward as the money wage rate falls.
Why do skilled workers generally earn more than unskilled workers?
A. The demand for unskilled labor is more inelastic than the demand for skilled labor B. Skilled labor has higher marginal revenue products than unskilled labor C. The demand for unskilled labor is greater than the demand for skilled labor D. The supply of skilled labor is greater than the supply of unskilled labor