when the minimum wage is set above the equilibrium market wage, A. there will be a shortage of labor at the minimum wage B. the unemployment rate will rise C. it will have no effect on the quantity of labor employed D. the unemployment rate will rise

when the minimum wage is set above the equilibrium market wage, A. there will be a shortage of labor at the minimum wage B. the unemployment rate will rise C. it will have no effect on the quantity of labor employed D. the unemployment rate will rise

Economics For Today

10th Edition

ISBN:9781337613040

Author:Tucker

Publisher:Tucker

Chapter11: Labor Markets

Section: Chapter Questions

Problem 10SQ

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Question

when the minimum wage is set above the equilibrium market wage,

A. there will be a shortage of labor at the minimum wage

B. the unemployment rate will rise

C. it will have no effect on the quantity of labor employed

D. the unemployment rate will rise

Definition Definition State in which an individual is without work, despite actively seeking employment opportunities. The unemployment rate refers to the percentage of the workforce that is currently unemployed. Unemployment is one of the key indicators of the conditions prevailing in an economy. It is therefore considered a barometer that points out the condition of an economy.

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