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If the Government Sets a Minimum Wage for Workers That

Question 13

Multiple Choice

If the government sets a minimum wage for workers that is above the competitive wage,


A) Unemployment would decrease through a disemployment effect.
B) Wages would fall as firms try to reduce labour costs.
C) The total wage bill must fall.
D) Unemployment would increase through a disemployment effect.
E) The total wage bill must rise.

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