From this diagram, the minimum wage OW will lead to

  • A full employment of resources
  • B unemployment
  • C inflation
  • D full employment of factors of production
jamb 2012economics

The correct answer is D. full employment of factors of production

The point OW shows that labour is highly utilized and the wage rate is competitive. This means the factors of production (laboour and wage ) have been highly utilized

Previous question Next question