Ask Question
BusinessBusiness
23 November, 07:47

If the minimum wage is set above the market equilibrium wage, a. All of the above are correct. b. highly-skilled workers will have a harder time finding jobs. c. unemployment will rise. d. the quantity of labor supplied will be below the quantity of labor demanded.

+5
Answers (2)
  1. 23 November, 08:02
    0
    Answer: The correct answer is "c. unemployment will rise.".

    Explanation: If the minimum wage is set above the market equilibrium wage, unemployment will rise.

    When the minimum wage is set above the market equilibrium salary, the amount of work offered is greater than the amount demanded. The result is unemployment.
  2. 23 November, 08:07
    0
    (C). Unemployment will rise

    Explanation:

    Minimum wage is the lowest amount that can be paid to an employee for performing a job and paying below this amount is illegal.

    Market equilibrium wage is the amount companies are willing to pay workers taking on new jobs, when the market is in equilibrium (when demand equals supply).

    Setting the minimum wage above the market equilibrium wage will mean that more people will be available to take jobs, while companies will reduce the amount of people they hire if they are to keep their wage costs constant.

    As such, "unemployment will increase", and demand for labor reduces and goes below the quantity of labor supplied.
Know the Answer?
Not Sure About the Answer?
Find an answer to your question 👍 “If the minimum wage is set above the market equilibrium wage, a. All of the above are correct. b. highly-skilled workers will have a harder ...” in 📗 Business if the answers seem to be not correct or there’s no answer. Try a smart search to find answers to similar questions.
Search for Other Answers
You Might be Interested in
A year ago, the engineering team at a company got a new boss to oversee the them. Things were fine at first, but a few months in there was a disagreement between some of the team and the boss.
Answers (1)
According to the textbook, an organization should have only one central plan that guides the organization towards its goals. In other words, the plan should have: Accuracy Flexibility Unity Continuity Synergy
Answers (1)
If a company mistakenly forgot to record depreciation on office equipment at the end of an accounting period, the financial statements prepared at that time would show: Select one: a. Assets overstated and equity understated. b.
Answers (1)
A study conducted by at& t and stanford university found that the top predictor of success and professional upward mobility was
Answers (1)
You can invest in taxable bonds that are paying a yield of 8.9 percent or a municipal bond paying a yield of 7.15 percent. Assume your marginal tax rate is 21 percent. Which security should you buy
Answers (1)
New Questions in Business
One of the advantages of personal selling over other types of marketing communications is: a. salespeople can customize their message for a specific buyer. b. it almost always costs less than other marketing communication alternatives. c.
Answers (1)
The difference between the maximum price a consumer is willing to pay for a product and the actual price the consumer pays is called
Answers (1)
Find the duration of a 7.6% coupon bond making semiannually coupon payments if it has three years until maturity and has a yield to maturity of 6.0%. What is the duration if the yield to maturity is 12.0%? Note: The face value of the bond is $100
Answers (1)
Vaughn Corporation acquires a coal mine at a cost of $460,000. Intangible development costs total $115,000.
Answers (1)
Sara wants to start her own business. She is not sure if she wants to be a sole proprietor or get a partner. She asks a financial adviser about the different ways in which she might finance her company.
Answers (1)
Home » Business » If the minimum wage is set above the market equilibrium wage, a. All of the above are correct. b. highly-skilled workers will have a harder time finding jobs. c. unemployment will rise. d.
Sign Up Forgot Password?