​Figure 52

Multiple Choice

​Figure 5.2. The figure shows the supply and demand curves of a firm.
-Which of the following is true with regard to minimum wages?​

A) ​A minimum wage does little to alleviate poverty.
B) ​A minimum wage helps deal with the problem of poverty.
C) ​A minimum wage leads to a surplus or unemployment in the skilled labor market.
D) ​A minimum wage adversely affects the unskilled laborers between the age group 40 and 45.
E) ​A minimum wage helps provide employment to teenagers and improve their standard of living.