A minimum wage is a government-mandated price floor that sets the lowest amount an employer can pay its employees for their work. It aims to protect workers by ensuring that they are paid a fair wage, but it can also have negative consequences, such as decreased employment opportunities and potentially increased prices for goods and services.

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A Minimum Wage Is

Question 78

Multiple Choice

A minimum wage is:

A) an employment protection law.
B) a labor market price ceiling.
C) the equilibrium wage in an unskilled labor market.
D) a labor market price floor.

Correct Answer: