The minimum wage
A)increases economic efficiency.
B)creates a shortage of labor.
C)creates a surplus of labor.
D)increases producer surplus.

Name: The minimum wage A)increases economic efficiency. B)creates a shortage of labor. C)creates a surplus of labor. D)increases producer surplus.
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Question

Quizplus · Accepted Answer

A minimum wage set above the equilibrium wage creates a surplus of labor, meaning there are more people willing to work at that wage than there are jobs available, leading to unemployment.

The Minimum Wage