Asked by Asline Charles on May 27, 2024
Verified
A binding minimum wage causes the quantity of labor demanded to exceed the quantity of labor supplied.
Binding Minimum Wage
A government-set minimum wage that is above the equilibrium wage, potentially leading to unemployment because the quantity of labor supplied exceeds the quantity demanded.
Labor Demanded
The total number of workers that employers are willing and able to hire at a given wage rate in a certain period of time.
Labor Supplied
The aggregate amount of hours that employees are prepared and capable of working for a specified rate of pay.
- Investigate the outcomes of minimum wage statutes on workforce participation and standards of living.
Verified Answer
TH
Tiffany HoppesMay 28, 2024
Final Answer :
False
Explanation :
A binding minimum wage actually causes the quantity of labor supplied to exceed the quantity of labor demanded, leading to a surplus of labor or unemployment.
Learning Objectives
- Investigate the outcomes of minimum wage statutes on workforce participation and standards of living.