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Figure 19-1 -The Idea That Minimum-Wage Laws Lead to Wages That Exceed

Question 181

Multiple Choice

Figure 19-1
Figure 19-1 -The idea that minimum-wage laws lead to wages that exceed equilibrium levels A) is a component of the theory of efficiency wages. B) cannot be valid unless labor unions are sufficiently powerful to force enactment of those laws in the first place. C) is more applicable to unskilled-labor markets than to skilled-labor markets. D) All of the above are correct.
-The idea that minimum-wage laws lead to wages that exceed equilibrium levels

A) is a component of the theory of efficiency wages.
B) cannot be valid unless labor unions are sufficiently powerful to force enactment of those laws in the first place.
C) is more applicable to unskilled-labor markets than to skilled-labor markets.
D) All of the above are correct.

Correct Answer: