Because minimum wage is a price floor
A) it will maximize consumer surplus.
B) it will create a deadweight loss.
C) it will be set below the market equilibrium price.
D) it will increase the number of jobs available in the labor market.
B
You might also like to view...
Refer to Table 8-9. Suppose that the above table represents the goods and services produced in a very simple economy in 2016. Assume that steel is used as an input in the production of autos. Using that information, calculate GDP for the year 2016
What will be an ideal response?
Why has the free market system produced the most rapid rates of growth of any economic system?
depicts the general shape of the investment function
What will be an ideal response?
Who is associated with the following summary of the economic way of thinking: "The theory of economics does not furnish a body of settled conclusions immediately acceptable to policy. It is a method rather than a doctrine, an apparatus of the mind, a technique of thinking which helps its processer draw correct conclusions."
A. John Maynard Keynes B. Alfred Marshall C. Adam Smith D. President Harry Truman