Which example below is a wage floor?

(a) minimum wage established by government

(b) agricultural price supports stabled by government

(c) rationing by coupons, random assignment, or waiting programs issued by government

(d) none of the above

The answer is A. A minimum wage is a law that makes it illegal for workers to sell their labor at any wage lower than the floor. These laws are designed to help workers earn higher wages than they would in a competitive environment where wages were determined by the free market. For a minimum wage to be effective or binding, it must be set higher than the equilibrium wage.

Answer B is incorrect since these laws increase the prices of certain crops so that farmers do not go out of business. Answer C is incorrect since those are types of distribution used by the government instead of market prices set by buyers and sellers.