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JAMB Economics 2006 Question 37

Question 37

Labour Market

Minimum wage legislation will result in

  1. A.reduced income
  2. B.greater supply of labour
  3. C.reduced labour productivity
  4. D.greater demand for labour
Show the answer and explanation

Answer: B (greater supply of labour)

Explanation

A minimum wage above the market rate attracts more people to offer their labour, so the supply of labour increases.