Question

1. minimum wage laws are an example of:

externality
price ceiling
price floor
market failure

Explanation:

A price - floor is a legal minimum price. Minimum wage laws set a legal minimum for the price of labor (wages), which is an example of a price - floor. An externality is a cost or benefit that affects a third - party not involved in the economic transaction. A price ceiling is a legal maximum price. Market failure occurs when the free - market system fails to allocate resources efficiently.

Answer:

C. Price floor