Ppry QUESTION 33 Which of the following is correct? O a The minimum wage is more

Question

Ppry QUESTION 33 Which of the following is correct? O a The minimum wage is more often binding for teenagers than for other members of the labor force. o b. Studies of the effects of the minimum wage typically find that a 10 percent increase in the minimum wage raises the average wage of teenagers by 10 percent. O C. All firms consistently enforce minimum-wage laws. o d. The drop in teenage employment caused by a 10 percent increase in the minimum wage is not significant. QUESTION 34 In a given market, how are the equilibrium price and the market-clearing price related? a. There is no relationship

Explanation / Answer

The correct answer is option a

Explanation : - The impact of the minimum wage depends on the skill and experience of the worker. Older workers tend to be more skilled and have more experience. The minimum wage has the greatest impact on the market for teenage workers. The equilibrium wages for teenage workers tend to be lower beause teenagers are among the least skilled and least experienced members of the labor force. Hence a minimum wage will make teenagers less employable as they lack the skill and experience possessed by the older members.

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