Q158
The minimum wage is an example of
A.
Price floor
AnswerB.
Price ceiling
C.
Equilibrium wage
D.
Efficiency of labour
Answer: Option A
Solution
Answer: Option A
Solution:
The minimum wage is an example of Price floor. A price floor is the absolute minimum price at which a good or service (labor in this case) can be sold and it is usually set by the government. Price floors are set above the market equilibrium price of a good or service.