Which of the following statements about a legislated minimum wage is true?
A) In a competitive labour market,(if effective) it may increase wages and will increase employment.
B) In a monopsonistic labour market,(if effective) it may increase wage rates but it must decrease employment.
C) In a monopsonistic labour market,if set equal to the competitive wage,will increase wages and employment.
D) It will have the same wage and employment effects in competitive and monopsonistic labour markets.
E) It will have no effect if the market is monopsonistic.
Correct Answer:
Verified
Q65: If a minimum wage is set above
Q66: The diagram below shows the supply and
Q67: The diagram below shows the supply and
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents