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If the Minimum Wage Is Lowered and Closer to the Market

Question 232

Multiple Choice

If the minimum wage is lowered and closer to the market level, the:


A) gains from trade would decrease, compared to a higher minimum wage.
B) gains from trade would increase, compared to a higher minimum wage.
C) lost gains from trade would increase, compared to a higher minimum wage.
D) deadweight loss would increase, compared to a higher minimum wage.

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