Which of the following statements is most accurate regarding who benefits and loses from establishing a minimum wage above the market clearing wage?
A. All workers benefit equally from the establishment of the minimum wage because just as many workers as before remain employed, and all earn the higher minimum wage.
B. Individuals who obtain jobs benefit because they earn a higher wage, but some individuals lose because employers will not hire them at the minimum wage.
C. All employers benefit equally from the establishment of the minimum wage because they are able to hire fewer workers at a lower wage.
D. All employers lose because they must pay the higher minimum wage to the same number of employees as they did before the minimum wage was established.
Answer: B
You might also like to view...
The slope of the consumption function is equal to:
A) the marginal propensity to consume. B) autonomous consumption. C) the marginal propensity to save. D) zero.
From the highest percentage to the lowest percentage, the percentage of profits earned by businesses in the United States is represented by which of the following?
A) partnerships, corporations, sole proprietorships B) corporations, sole proprietorships, partnerships C) corporations, partnerships, sole proprietorships D) sole proprietorships, partnerships, corporations
The problem of moral hazard arises because _____
a. individuals receive insurance through their employer, who has different incentives b. individuals with insurance have no incentive to avoid insured expenditures c. some individuals have religious objections to purchasing insurance d. some individuals are immoral
If an economy produces 2,000 units of output with a price level of $1 and the money supply (M) is $1,000, velocity is:
A. 2. B. 500. C. 50. D. 5.