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The Minimum Wage Is a

Question 45

Multiple Choice

The minimum wage is a


A) possible cause of job rationing because it lowers wages below their equilibrium.
B) possible cause of job search because it lowers wages below their equilibrium.
C) government established highest wage that is legal to pay.
D) factor that decreases unemployment because fewer people search for work if the minimum wage is increased.
E) possible cause of job rationing because it raises wages above their equilibrium.

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