In the United States, the federal minimum wage is legislated in nominal terms. This means that
A. the federal minimum wage historically decreases in value during stretches when the minimum wage is not increased.
B. unemployed workers collect government assistance equal to the minimum wage.
C. employers do not have to pay payroll taxes on wages paid to minimum wage workers.
D. the government pays the minimum wage to all local, state, and federal workers.
E. the federal minimum wage is indexed for inflation.
Answer: A
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What will be an ideal response?
The more narrowly defined a good is, the more elastic the demand for the good will tend to be, ceteris paribus.
Indicate whether the statement is true or false.
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