A legally mandated minimum wage is an example of
A) the invisible hand principle.
B) a price floor.
C) a price ceiling.
D) a fringe benefit.

Name: A legally mandated minimum wage is an example of A) the invisible hand principle. B) a price floor. C) a price ceiling. D) a fringe benefit.
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Question

Quizplus · Accepted Answer

A legally mandated minimum wage sets a minimum price that employers are required to pay their employees. This creates a price floor in the labor market, as the wage cannot legally be set below the mandated minimum.

A Legally Mandated Minimum Wage Is an Example of