Question

Whether the minimum wage is a binding price floor always depends upon whether the economy is in a recession. a. True b. False

Answer 1

Answer:

false

Explanation:

A price floor is when the government or an agency of the government sets the minimum price of a product. A price floor is binding if it is set above equilibrium price

A country is in a recession when the GDP for 2 consecutive quarters is negative.

A binding price floor depends if it is above or below equilibrium