Use the following to answer question(s): The Minimum Wage

-(Exhibit: The Minimum Wage) If it is thought that wages for some workers are not "sufficient" and a minimum wage is established at Wm, which is a wage _______ , that means that _______ workers will now be hired.
A) ceiling; L₂
B) floor; L₁
C) floor; L₂
D) ceiling; L₃

Question

Use the following to answer question(s): The Minimum Wage
 
-(Exhibit: The Minimum Wage) If it is thought that wages for some workers are not "sufficient" and a minimum wage is established at Wm, which is a wage _______ , that means that _______ workers will now be hired.
A) ceiling; L₂ 
B) floor; L₁ 
C) floor; L₂ 
D) ceiling; L₃

Quizplus · Accepted Answer

Establishing a "floor" minimum wage means that employers cannot pay workers below that wage, so more workers (L₂) will now be hired at that minimum wage (Wm). A "ceiling" minimum wage would mean that employers cannot pay workers above a certain wage, potentially limiting the number of workers hired (L₃).

Use the Following to Answer Question(s): the Minimum Wage