Chapter 10: The Minimum Wage

Unemployment

________ occurs when there is a surplus of labor in the market.

Minimum wage laws

________ are most often touted as antipoverty policies.

minimum wages

Because ________ benefit relatively few poor workers at the expense of other poor workers, businesses, and consumers, ________ do not reduce poverty and instead reduce overall social welfare.

When state and federal minimum wages are different

workers are entitled to whichever minimum wage is higher.

The decrease in supply will cause

an inward shift in the supply curve for the product, an increase in the equilibrium price of the product, and a decrease in the equilibrium quantity of the product sold.

Although the minimum wage helps some workers by

increasing their incomes, the minimum wage hurts other members of society by generating unemployment, reduced profits, and higher prices.