Which of the following statements about the minimum wage is false?

The minimum wage causes a shortage of unskilled labor.





The minimum wage is an example of a price floor.








The minimum wage increases unemployment among unskilled workers.





More unskilled individuals are willing to offer their services in the labor market with a minimum wage than would without it.





The minimum wage is set above the equilibrium wage.Which of the following statements about the minimum wage is false?
1 is certainly false. Even the text book theory predicts a surplus of unskilled labor looking for work. Actually, the theory does not predict a shortage or surplus of unskilled labor period, it predicts unskilled labor *looking for work*.





2 is true since a price floor prevents prices falling down through the floor. In this case, the price is the wage, or the pirce of an hour's labor.





3. According to the text, this is true. However, in practice, there is little to no evidence that this is true. Therefore, the text is wrong. It is easy to draw lines or curves that give you no unemployment, you just can't draw them the usual way.





4 According to the text, this is true. However, if 3 is not true, I doubt 4 is as well.





5. This is true in some cases, false in other cases. There are many unskilled jobs - such as day laborers - who make above the minimum wage in californiaWhich of the following statements about the minimum wage is false?
3
The first one is false. A minimum wage increases the incentive of lower skilled workers to work. Although, there are many problems which arise due to a minimum wage which could hurt the lower skilled worker, this would go beyond the scope of your question.





#1 is false.