Asked by Paris Smith on May 21, 2024
Verified
Minimum-wage laws benefit society by creating a surplus of labor.
Minimum-Wage Laws
Legislation that sets the lowest hourly wage rate that an employer can legally pay to workers, aiming to ensure a minimum standard of living for employees.
Surplus Of Labor
The situation where the supply of labor exceeds the demand for it, often leading to unemployment or underemployment.
- Clarify the rationale and outcomes of price controls on market dynamics and economic prosperity.
Verified Answer
AB
Ariana BucknerMay 21, 2024
Final Answer :
False
Explanation :
Minimum-wage laws can lead to a surplus of labor because they set a floor on wages above the equilibrium market rate, which can result in more people wanting to work at the higher wage than there are jobs available, leading to unemployment.
Learning Objectives
- Clarify the rationale and outcomes of price controls on market dynamics and economic prosperity.
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