Question

Minimum-wage laws can keep wages a. above equilibrium and cause a shortage of labor. b. below equilibrium and cause a shortage of labor. c. above equilibrium and cause a surplus of labor. d. below equilibrium and cause a surplus of labor.

Answer 1

Answer:

Minimum-wage laws can keep wages above equilibrium and cause a surplus of labor.

Explanation:

• Wage law is the boundary that sets the cost to be paid to the people hiring employees for monthly or hourly work.
• More than 90% of countries in the world have legally set this law in their country so that no employee can be hired below the rate that they deserve.
• The minimum wage law adds up the surplus to the labor and makes the hourly or monthly wage above equilibrium.
• The minimum wage of labor differs from one country to another.