suppose the government of fairtown decided to set a minimum wage that can be paid by companies to their…

suppose the government of fairtown decided to set a minimum wage that can be paid by companies to their workers in the town at $15/hour. without the regulation companies in fairtown paid as little as $10 to their workers. labor market in fairtown is highly competitive with many companies competing for workers.\n1. this regulation is a type of select\n2. ...and is likely to select the number of jobs available,\n3. ...and create a select of workers.\npotential consequences of the regulation are:\n4. the regulation may select.\n5. the regulation may encourage companies to offer select on - the - job training.\n6. the regulation may encourage companies to offer select unpaid internships.

suppose the government of fairtown decided to set a minimum wage that can be paid by companies to their workers in the town at $15/hour. without the regulation companies in fairtown paid as little as $10 to their workers. labor market in fairtown is highly competitive with many companies competing for workers.\n1. this regulation is a type of select\n2. ...and is likely to select the number of jobs available,\n3. ...and create a select of workers.\npotential consequences of the regulation are:\n4. the regulation may select.\n5. the regulation may encourage companies to offer select on - the - job training.\n6. the regulation may encourage companies to offer select unpaid internships.

Answer

Brief Explanations:

  1. A minimum - wage is a price floor as it sets a lower limit on the wage rate.
  2. When a price floor (minimum wage) is above the equilibrium wage, it can lead to a decrease in the quantity of jobs demanded by companies.
  3. Since the wage is higher, more workers are willing to work, creating a surplus of workers.
  4. Higher costs due to minimum wage may lead to companies reducing employment.
  5. To offset higher labor costs, companies may offer less on - the - job training.
  6. To avoid paying the minimum wage, companies may increase the number of unpaid internships.

Answer:

  1. price floor
  2. decrease the number
  3. surplus
  4. reduce employment
  5. less
  6. more