Question

the lowest amount a manufacturer can pay factory workers is an example of

an incentive.

a price floor.

a price ceiling.

an elastic service.

Explanation:

• An incentive is a reward to encourage action, not a minimum pay.
• A price floor is a minimum price set (here, minimum wage for workers, a type of price floor in labor market).
• A price ceiling is a maximum price, opposite of minimum.
• Elastic service relates to demand/supply elasticity, not minimum pay. So the correct option is the one with "a price floor".

Answer:

B. a price floor (assuming the second option is labeled B; if options are unlabeled, "the option with 'a price floor'")