The minimum wage is an example of
A)a subsidy for low-skilled workers.
B)a price floor.
C)a price ceiling.
D)a black market.

Question

Quizplus · Accepted Answer

The minimum wage sets a legal price floor for the wages paid to workers, meaning that employers cannot pay workers less than a certain amount. This creates a surplus of available workers in the labor market and can lead to unemployment or reduced hours for low-skilled workers.

The Minimum Wage Is an Example of