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When the Government Mandates That Firms Supply a Particular Benefit

Question 2

Multiple Choice

When the government mandates that firms supply a particular benefit, it is usually the case that


A) the cost of providing the benefit is less than the worker's value of the benefit.
B) employment will increase.
C) the wage will increase.
D) the wage will decrease by more than the cost of providing the benefit.
E) the wage will decrease by less than the cost of providing the benefit.

Correct Answer:

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