The minimum wage is an example of a government price ceiling and results in a reduction in unemployment.

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The minimum wage is a government price floor, not a price ceiling. It sets a minimum wage that employers must pay to their employees. There is debate among economists about whether it leads to a reduction or an increase in unemployment, as some argue that it may lead to employers hiring fewer workers or outsourcing jobs to countries where labor is cheaper.

The Minimum Wage Is an Example of a Government Price