-The graph above shows the labour market for fast-food workers in Canberra. If the government sets a minimum wage of $7 an hour, then the labour market is ________, and marginal benefit ________ marginal cost.
A) efficient; equals
B) inefficient; is greater than
C) inefficient; cannot be compared to
D) inefficient; is less than
E) inefficient; equals

Question

-The graph above shows the labour market for fast-food workers in Canberra. If the government sets a minimum wage of $7 an hour, then the labour market is ________, and marginal benefit ________ marginal cost.
A) efficient; equals 
B) inefficient; is greater than 
C) inefficient; cannot be compared to 
D) inefficient; is less than 
E) inefficient; equals

Quizplus · Accepted Answer

A minimum wage set above the equilibrium wage creates a surplus of labor, making the market inefficient. The marginal benefit of hiring an additional worker is greater than the marginal cost, as employers are willing to pay less than the minimum wage.

-The Graph Above Shows the Labour Market for Fast-Food Workers